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.

---

Definitions:

Opportunity Cost

The receipts from the next most valuable forgone alternative when making a decision or choice among many options.

Opportunity Cost

The value of the best alternative foregone where a choice needs to be made between several mutually exclusive alternatives.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Future Value

Value of cash flows at a future date, taking into account interest accumulated between when the cash flow occurred and the future date.