Gerald Company Manufactures Books

question 50

Multiple Choice

Gerald Company manufactures books. Manufacturing a book takes 10 units of A1 and 1 unit of A2. Scheduled production of books for the next two months is 1,000 and 1,200 units, respectively. Beginning inventory is 4,000 units of A1 and 30 units of A2. The ending inventory of A1 is planned to decrease 500 units in each of the next two months, and the A2 inventory is expected to increase 5 units in each of the next two months. How many units of A1 does expect to use in production during the second month?

• A)12,000 units
• B)12,500 units
• C)10,000 units
• D)10,750 units

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Definitions:

Socioeconomic View

A perspective that considers both social and economic factors when analyzing situations or phenomena.

Profit

The financial gain obtained when the revenues generated from business activities exceed the expenses, taxes, and costs involved in maintaining the business.

Corporate Charity

Refers to the donations and philanthropic activities undertaken by a company in support of various social, environmental, or community issues.

Altruism

The belief or practice of disinterested and selfless concern for the well-being of others, often leading to voluntary helpfulness.