The Sales Budget of the Owens Company for Each of the Next

question 28

Multiple Choice

The sales budget of the Owens Company for each of the next three months is shown: January 40,000 units
February 50,000 units
March 30,000 units
The company's policy requires that 20% of the following month's budgeted sales units are on hand at the beginning of each period. How many units must be produced in February?

• A) 40,000 units
• B) 46,000 units
• C) 56,000 units
• D) 54,000 units

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Definitions:

Opportunity Cost

The expense incurred by not choosing the second-best option available when a decision is made or an action is taken.

Pure Capitalism

An economic system characterized by private ownership of the means of production and where investments, distribution, income, production, and prices are determined by the market.

Owns No Resources

The condition of not having access to or control over any assets, capital, or means of production.

Production Possibilities Frontier

A curve that shows the different combinations of various goods that a country can produce given certain resources and technology.