Hanover Inc Hanover Desires to Have Buckets on Hand at the End

question 39

Multiple Choice

Hanover Inc.sells buckets for $15 each.Budgeted unit sales for 4 months of 2017 are: $$\begin{array} { l l } \text { March } & 26,000 \text { buckets } \\\text { April } & 28,000 \text { buckets } \\\text { May } & 22,000 \text { buckets } \\\text { June } & 25,000 \text { buckets }\end{array}$$ Hanover desires to have buckets on hand at the end of each month equal to 16 percent of the following month's budgeted unit sales.Each bucket requires 3.9 pounds of plastic.At the end of each month, Hanover desires to have 12 percent of production material needs for the next month on hand.The plastic costs $0.40 per pound.How many buckets should Hanover produce during May?

• A)27,040 buckets
• B)31,520 buckets
• C)27,280 buckets
• D)None of the answer choices are correct.

---

Definitions:

Barriers

Obstacles that prevent new competitors from easily entering an industry or area of business.

Decision Variable

A variable, often under the control of a decision-maker, which influences the outcome of an optimization problem.

Market Structure

The organizational and characteristic features of a market, including the level of competition and number of participants.

Market Structure

Market Structure refers to the organizational and other characteristics of a market, largely influencing the nature of competition and pricing within the market.