DuraBlend First Aid Started Operations on January 1, 2014 $$\begin{array} { l l } \text { January } & 6,000 \\\text { February } & 8,000 \\\text { March } & 7,000 \\\text { April } & 9,000\end{array}$$

question 34

Multiple Choice

DuraBlend First Aid started operations on January 1, 2014. On that date, the only assets were cash of $13,000, and inventory of $600 consisting of direct materials. The company sells first aid kits for $18 each. Additional information concerning the company's operations follows:
.Variable costs of production are $5 for each kit consisting of direct materials of $2.00, direct labor totaling $1.80, and $1.20 per unit in variable overhead.
.Other expenses include $1 per first aid kit in variable selling expenses, $22,000 per month in fixed production costs, and $14,000 per month in fixed selling and administration costs.
.Sales are collected 40% in the month of sales and 60% in the month after the sale.
.All expenses are paid in the month they are incurred except materials that are paid in the month following purchase.
.The company plans its ending inventory of first aid kits to be 20% of the units to be sold during the next month. Direct material inventory is budgeted to be equal to 10% of the next month's production requirements.
.Sales in units are forecasted as follows: $$\begin{array} { l l } \text { January } & 6,000 \\\text { February } & 8,000 \\\text { March } & 7,000 \\\text { April } & 9,000\end{array}$$
How many first aid kits will the company produce in February?

• A) 7,800 units
• B) 7,400 units
• C) 9,400 units
• D) 8,200 units

Understand the significance of barriers to entry in maintaining a monopoly position in the long run.

Identify the differences between market structures, particularly focusing on monopolies and perfect competition.

Calculate changes in total revenue, consumer surplus, and producer surplus under different pricing strategies and market conditions.

Understand the key neurotransmitters associated with unipolar depression.

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Definitions:

Strategic

refers to the careful planning and management of resources to achieve a specific goal or to gain an advantage.

Fluid Intelligence

The capacity to reason quickly and think abstractly, enabling problem solving and learning in novel situations.

Selective Optimization With Compensation

The theory, developed by Paul and Margaret Baltes, that people try to maintain a balance in their lives by looking for the best way to compensate for physical and cognitive losses, and to become more proficient in activities they can already do well.

Practical Intelligence

The skill of overcoming routine problems by leveraging insights obtained from previous experiences rather than from theoretical or academic learning.