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:

Belongingness Needs

are a person's inherent need to feel connected, valued, and a part of a group or social circle, reflecting a fundamental human motivation.

ERG Theory

ERG Theory is a motivation theory developed by Clayton Alderfer that categorizes human needs into three types: Existence, Relatedness, and Growth, suggesting that these needs can influence workplace behavior.

Basic Psychological Needs

Fundamental human motivations that include the need for competence, autonomy, and relatedness, which are essential for psychological development and well-being.

Friendly Relationships

Bonds between individuals characterized by mutual affection, support, and a positive regard, fostering a pleasant social environment.