Use the Following Information for the Next 3 Questions

question 91

Multiple Choice

Use the following information for the next 3 questions.
(CMA) Table Top produces tables sold to discount stores. The table tops are manufactured in the U.S. by Table Top, but the table legs are manufactured in a plant in Nogales, Mexico. The assembly department attaches the four purchased table legs to the table top. It takes 20 minutes of labor to assemble a table. The company follows a policy of producing enough tables to insure that 40% of next month's sales are in the finished goods inventory. Table Top also purchases sufficient raw materials to insure that raw materials inventory is 60% of the following month's scheduled production. Table Top's sales budget in units for the next quarter is as follows:
-Assume the required production for August and September is 1,600 and 1,800 units, respectively, and the July 31, 20x5 raw materials inventory is 4,200 units. The number of table legs to be purchased in August is

• A) 6,520 legs
• B) 9,400 legs
• C) 2,200 legs
• D) 6,400 legs

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Definitions:

Open Systems Model

An organizational theory perspective that views organizations as complex systems interacting with their environment to exchange resources and adapt.

External Factors

Refer to the elements outside of an organization that can affect its performance, including economic, social, political, and technological influences.

Top Managers

Individuals at the highest level of an organization's management who are responsible for setting strategic goals and ensuring the organization's long-term success.

Strategy

A plan of action designed to achieve a long-term or overall aim.