Tiny Toons Distributes Cartoon DVDs That Sell for $12 Each

question 65

Multiple Choice

Tiny Toons distributes cartoon DVDs that sell for $12 each. Tiny Toons pays $7 per DVD to buy the product. Selling costs of $1 per unit are incurred to deliver the DVDs to the customer. This is paid in cash when the product is sold. Tiny Toons has $50,000 per month in fixed selling and administrative expenses (including $3,000 in depreciation) , which are paid half in the month incurred and half in the next month. It is Tiny's policy to maintain an inventory at the end of each month equal to 30% of the next month's projected unit sales.
Tiny Toons makes 30% of sales in cash, and the remainder are on credit. Credit sales are collected in the month after sale. Budgeted monthly sales for the first five months of 2014 are: $$\begin{array} { l l } \text { January } & 20,000 \text { units } \\\text { February } & 22,000 \text { units } \\\text { March } & 26,000 \text { units } \\\text { April } & 28,000 \text { units } \\\text { May } & 40,000 \text { units }\end{array}$$
How much are budgeted inventory purchases during February?

• A) $154,000
• B) $23,200
• C) $162,400
• D) $54,600

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Definitions:

Simple Main Effect of Gender

The isolated impact of gender on a dependent variable within a factorial study design, disregarding the influence of other interacting factors.

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In research, refers to the way different variables influence each other, often modifying the effects of one variable on another.

Simple Main Effect of Age

The specific impact of age on a dependent variable in a study that involves multiple independent variables, analyzed at levels of other interacting factors.

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Refers to the category or nature of one's occupation or employment, often characterized by the industry, role, and responsibilities associated with the position.