Reference: 07-09
Noel Enterprises Has Budgeted Sales in Units for the Next

question 3

Multiple Choice

Reference: 07-09
Noel Enterprises has budgeted sales in units for the next five months as follows: $$\begin{array} { | l | l | } \hline \text { January } & 6,800 \text { units } \\\hline \text { February } & 5,400 \text { units } \\\hline \text { March } & 7,200 \text { units } \\\hline \text { April } & 4,600 \text { units } \\\hline \text { May } & 3,800 \text { units } \\\hline\end{array}$$ Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on December 31 contained 400 units. The company needs to prepare a production budget for the second quarter of the year.
-The total number of units to be produced in February is:

• A)6,120.
• B)5,400.
• C)5,580.
• D)5,220.

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Definitions:

Tax

Mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Buyers

Individuals or organizations that purchase goods or services for personal use, resale, or as input for the production of other goods and services.

Price

The fiscal amount foreseen, obligatory, or rendered in settlement for something.

Tax Burden

The total amount of taxes that individuals or businesses must pay to the government, expressed as a percentage of income or revenue.