Nantucket Industries Manufactures and Sells Two Models of Watches, Prime

question 41

Multiple Choice

Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,500 units of Prime and 1,500 units of Luxuria in 2019.The following estimates are given for 2019:

Nantucket had an inventory of 200 units of Prime and 105 units of Luxuria at the end of 2018. It has decided that as a measure to counter stock outages it will maintain ending inventory of 400 units of Prime and 230 units of Luxuria.
Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $12. There were 120 units of Crimpson in stock at the end of 2018. The management does not want to have any stock of Crimpson at the end of 2019.
What is the total budgeted cost of goods sold for Nantucket Industries in 2019?

• A) $1,325,000
• B) $1,415,000
• C) $1,433,000
• D) $1,625,000

Recognize the skills and attitudes entrepreneurs need, such as risk tolerance and ability to handle ambiguity.

Understand the managerial functions and skills required to run a successful business, including planning and controlling.

Identify common challenges faced by entrepreneurs and strategies to overcome them.

Appreciate the contribution of small businesses to job creation and economic growth.

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Definitions:

Name-brand Clothes

Clothing items and accessories produced by prominent and easily recognizable fashion labels known for their quality and status symbol.

Unrealistically High

A description for expectations or aspirations that far exceed what is achievable or reasonable under normal circumstances.

Self-esteem

An individual's subjective evaluation of their own worth or value, which can influence emotions, behavior, and overall mental health.

Effortful Control

The ability to regulate one's emotions and actions through conscious, voluntary effort.