$\begin{array}{ll}\text { October } & 75,000 \\\text { November } & 98,000 \\\text { December } & 63,000\end{array}$

question 58

Multiple Choice

$\begin{array}{ll}\text { October } & 75,000 \\\text { November } & 98,000 \\\text { December } & 63,000\end{array}$ Each jar requires half a pound of berries. Yummy prefers to buy the freshest berries, so its policy is to have just 3% of the following month's production needs in ending inventory. On October 1, the company had 1,125 pounds of berries in inventory. Yummy's pays $0.60 per pound of berries. It buys all berries on account and typically pays 40% of a month's purchases in that month, and the remaining 60% the following month.
-Refer to Figure 9-9. How much cash is paid in November for berry purchases (rounded to the nearest dollar) ?

• A) $25,258
• B) $21,088
• C) $28,900
• D) $19,963
• E) $32,212

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Definitions:

Variable Cost

Expenses that vary in relation to the amount of production or operations.

Output

The total amount of goods and services produced by an individual, company, or country.

Marginal Cost

The cost of producing one additional unit of a good or service.