Mandy Corporation Sells a Single Product

question 11

Multiple Choice

Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 98,000 units, and desired ending inventory is 80,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.​
Material A: 0.5 lb. per unit @ $0.60 per pound
Material B: 1.0 lb. per unit @ $1.70 per pound
Material C: 1.2 lbs. per unit @ $1.00 per pound
-Production and sales estimates for March for Robin Co. are as follows: The number of units expected to be manufactured in March is

• A)24,000 units
• B)27,000 units
• C)27,600 units
• D)21,600 units

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Definitions:

Insight

The ability to understand the inner nature of things or to see intuitively.

Incubation

A period of development or gestation, either literally in the context of eggs or metaphorically in the context of ideas or diseases developing over time.

Creative Problem Solutions

Innovative and effective methods for solving problems, often involving thinking outside the conventional parameters.

Incubation

In problem-solving and creativity research, the process during which an unconscious recombination of thought processes occurs, potentially leading to a solution after a period of rest or distraction from the problem.