Table 11.1 Big Truck Tacos Has Developed the Following Forecast of Demand

question 83

Multiple Choice

Table 11.1
Big Truck Tacos has developed the following forecast of demand and accepted orders for their holiday tacos as they enter the Taco Festival Season. They enter the planning period with 65 holiday tacos in inventory as shown in Week 0.

-Use Table 11.1 to answer this question. After scoring a terrific deal on tortillas, Big Truck Tacos decides to produce 120 tacos in weeks 1, 2, and 3. If they make tacos in batches of 20, what should their MPS entry be for the fifth week of production?

• A) 60
• B) 80
• C) 100
• D) 120

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Definitions:

Erosion Cost

Costs that occur when the introduction of a new project reduces sales and profits of existing products.

Depreciation Expense

The allocation of an asset's cost over its useful life, reflecting the decrease in value of tangible assets.

Operating Cash Flows

Cash generated from a company's regular business operations, excluding financing or investment-related cash flow.

Net Income

Net Income is the total earnings of a company after all expenses, taxes, and costs have been subtracted from total revenue.