Each Speaker System Requires 3 Boxes and 15 Yards of Wire

question 42

Multiple Choice

Each speaker system requires 3 boxes and 15 yards of wire. Boxes cost $4 each and wire is $0.60 per yard. Connor wants to have 20% of the following month's production needs in ending raw materials inventory. On January 1, Connor had 24,000 boxes and 100,000 yards of wire in inventory.
-Refer to Figure 9-10. How many boxes does Connor expect to purchase in January?

• A) 159,650
• B) 114,420
• C) 214,550
• D) 148,500
• E) 138,420

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Definitions:

Producer Surplus II

Represents the difference between what producers are willing to accept for a good or service versus what they actually receive, indicating the benefit to producers.

Consumer Surplus

The difference in consumer's payment expectation versus their actual expenditure on a good or service.

Demand Curve

A graph representing the relationship between the price of a good and the amount consumers are willing and able to purchase at various prices.

Producer Surplus

The difference between the actual price at which a producer sells a product and the minimum price they would be willing to accept, indicating producer gain.