Production and Sales Estimates for June Are as Follows ? the Number of Units Expected to Be Manufactured in

question 75

Multiple Choice

Production and sales estimates for June are as follows: $\begin{array}{lr}\text { Estimated inventory (units) , June 1 } & 18,500 \\\text { Desired inventory (units) , June } 30 & 19,000 \\\text { Expected sales volume (units) : } & \\\text { Area X } & 3,000 \\\text { Area Y } & 4,000 \\\text { Area Z } & 5,500 \\\text { Unit sales price } & \$ 20\end{array}$ ? The number of units expected to be manufactured in June is:

• A) 10,000.
• B) 12,000.
• C) 13,000.
• D) 12,500.

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Definitions:

Useful Life

The estimated period over which an asset is expected to be usable by an organization, affecting its depreciation calculation.

Net Cash Inflow

The total amount of cash received minus the total amount of cash spent over a period.

Initial Investment

The initial amount of money spent to purchase an asset or start a project.

Annuities

Financial products that provide a series of payments over time, often used for retirement income.