Use the Following Information for Questions

question 86

Multiple Choice

Use the following information for questions
At January 1, 2020, Jake, Inc.has beginning inventory of 4,000 surfboards.Jake estimates it will sell 15,000 units during the first quarter of 2020 with a 10% increase in sales each quarter.Jake's policy is to maintain an ending inventory equal to 25% of the next quarter's sales.Each surfboard costs $200 and is sold for $250.
-How many units should Jake produce during the first quarter of 2020?

• A)15,125
• B)15,000
• C)12,500
• D)11,000

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Definitions:

Valid Title

A legal term indicating that a title to a piece of property is legally effective, with the holder having rightful ownership and no claims or outstanding liens against the property.

Clarify

To make a statement or situation less confused and more comprehensible.

Obligations

Duties or commitments imposed by law, contract, or a sense of moral responsibility.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize laws across the states.