Feedee Company Has Budgeted Sales and Production (In Units) Over

question 65

Multiple Choice

Feedee Company has budgeted sales and production (in units) over the next three months as follows: $$\begin{array} { l c c c } & \text { January } & \text { February } & \text { March } \\\text { Sales } & 50,000 & ? & 80,000 \\\text { Froduction } & 52,000 & 64,000 & 78,000\end{array}$$ There are 10,000 units on hand on January 1. A minimum of 20 per cent of the next month's sales in units must be on hand at the end of each month. April sales are expected to be 70,000. Budgeted sales for February would be

• A)64,000.
• B)78,000.
• C)60,000.
• D)52,000.

---

Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a claim on a portion of the company's profits in the form of dividends.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically including bonds, notes, and bills.

Semiannual Interest

Interest payments made twice a year on certain types of debt securities, such as bonds.

Maturity Value

The amount payable to the investor at the end of a debt instrument's life.