Consider the Estimated Aggregate Demand for a Company's Ski Product

question 93

Multiple Choice

Consider the estimated aggregate demand for a company's ski product line for the upcoming year in the following table.Calculate the total costs for the month of March using the level production strategy.Assume the regular time production cost as $200/pair of skis,and the average monthly inventory holding cost is $20/pair of skis per month. $$\begin{array} { | c | c | c | c | } \hline \text { Month } & \begin{array} { c } \text { Demand } \\\text { (in pairs } \\\text { of unit) }\end{array} & \text { Month } & \begin{array} { c } \text { Demand } \\\text { (in pairs } \\\text { of units) }\end{array} \\\hline \text { J an } & 8,000 & \text { J uly } & 1,000 \\\hline \text { Feb } & 7,000 & \text { Aug } & 1,300 \\\hline \text { Mar } & 5,000 & \text { Sept } & 2,000 \\\hline \text { Apr } & 4,000 & \text { Oct } & 3,000 \\\hline \text { May } & 2,000 & \text { Nov } & 5,700 \\\hline \text { J une } & 2,000 & \text { Dec } & 7,000 \\\hline\end{array}$$

• A)$810,000
• B)$900,000
• C)$880,000
• D)$850,000

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Definitions:

Income Ratios

Financial metrics comparing various components of a company's income statement to assess performance and profitability.

Noncash Assets

Assets that are not in the form of cash and can include items such as property, equipment, and intellectual property.

Fair Value

Fair value is the estimated market price of an asset or liability, reflecting its value in an arm's length transaction between willing parties.

Book Value

The net value of a company's assets expressed on its balance sheet, calculated as total assets minus intangible assets and liabilities.