Lan Corporation Had Beginning Inventory of $42 000 and Expects

question 73

Multiple Choice

Lan Corporation had beginning inventory of $42 000 and expects cost of sales of $96 000 units during the month. Desired ending inventory is $31 000. How much inventory should Lan Corporation purchase?

• A)$73 000
• B)$65 000
• C)$85 000
• D)$107 000

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Definitions:

Exports

Goods or services sold by a country to buyers located in other countries.

Export Supply

The total amount of goods and services a country's producers are willing and able to sell abroad at a given price level.

Import Demand

The desire or need for products or services brought into a country from abroad.

Equilibrium World Price

The price at which the supply of a good on the global market equals the demand for that good.