Use the Following Information for Questions

question 35

Multiple Choice

Use the following information for questions
At January 1, 2016, Jake, Inc.has beginning inventory of 4,000 surfboards.Jake estimates it will sell 15,000 units during the first quarter of 2016 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 2016?

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

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Definitions:

Prove

To demonstrate the truth or validity of something through evidence or argument.

Donoghue v. Stevenson

A foundational case in tort law, establishing the principle of duty of care for manufacturers to consumers.

Standard of Care

The degree of care and caution required by an individual, especially as it pertains to the professional or legal duties imposed on them.

Statutory Provision

A specific clause or provision within a statute (law) enacted by a legislative body.