Watson Corporation Manufactures Boxes

question 174

Multiple Choice

Watson Corporation manufactures boxes. The estimated numbers of boxes sold for the first three months of 2014 are as follows: Finished goods inventory at the end of December was 600 units. Ending finished goods inventory is equal to 20% of the next month's sales. Watson Corporation expects to sell the boxes for $5 each. April 2014 sales are projected at 4,500 boxes. How many boxes should be produced in February?

• A) 4,140 boxes
• B) 4,200 boxes
• C) 4,260 boxes
• D) 3,900 boxes

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Definitions:

Employer Pays

A principle or practice where the employer is responsible for bearing certain costs, such as those related to employee wages, benefits, and other employment-related expenses.

Bureaucracy

Definition: A system of administration characterized by strict policies, procedures, and hierarchy, usually within large organizations or governments.

Compa-ratio

is a metric that compares an individual's salary to the midpoint of a salary range for their position, offering insight into relative pay positioning.

Fair Labor Standards Act

A United States law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week.