Kwanzan Industries Expects to Sell 470 Units of Product a and 410

question 33

Multiple Choice

Kwanzan Industries expects to sell 470 units of Product A and 410 units of Product B each day at an average price of $25 for Product A and $28 for Product B.The expected cost for Product A is 45% of its selling price and the expected cost for Product B is 65% of its selling price.Kwanzan Industries has no beginning inventory,but it wants to have a four-day supply of ending inventory for each product.Compute the budgeted purchases for the next (seven-day) week.(Round the answer to the nearest dollar.)

• A) $89,247
• B) $92,920
• C) $162,610
• D) $140,245

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Definitions:

Revolving Line of Credit

A flexible loan where the borrower can access funds up to a certain limit, pay back, and then borrow again without needing to reapply for a new loan.

Simple Interest

Interest computed exclusively on the original amount of a loan or deposit, without adding interest to the principal for future calculations.

Annual Rate

The interest rate for a period of one year, often used to compare the yields of investments or loans.

Simple Interest Rates

The rates at which simple interest is calculated, typically expressed as a percentage of the principal amount annually.