Workout Together Has Projected the Following Sales for the Coming

question 68

Multiple Choice

Workout Together has projected the following sales for the coming year: Sales in the year following this one are projected to be 18 percent greater in each quarter.Assume the firm places orders during each quarter equal to 35 percent of projected sales for the next quarter.How much will the firm pay to its suppliers in Quarter 2 if its accounts payable period is 60 days?

• A)$212.67
• B)$241.33
• C)$291.67
• D)$351.33
• E)$356.67

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Definitions:

Carrying Costs

The aggregate amount spent on inventory upkeep, which covers costs related to storage, insurance premiums, and tax payments.

Opportunity Costs

The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing.

Interest Costs

The expenses incurred by borrowing money or the costs associated with the use of credit.