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

question 74

Multiple Choice

Consider the estimated aggregate demand for a company's ski product line for the upcoming year in the following table.Calculate the average inventory for the month of February under a level production strategy.Assume the beginning inventory for January is 8,000 units. $$\begin{array} { | c | c | c | c | } \hline \text { Month } & \begin{array} { c } \text { Demand } \\\text { (in pairs } \\\text { of unit) }\end{array} & \text { Month } & \begin{array} { c } \text { Demand } \\\text { (in pairs } \\\text { of units) }\end{array} \\\hline \text { J an } & 8,000 & \text { J uly } & 1,000 \\\hline \text { Feb } & 7,000 & \text { Aug } & 1,300 \\\hline \text { Mar } & 5,000 & \text { Sept } & 2,000 \\\hline \text { Apr } & 4,000 & \text { Oct } & 3,000 \\\hline \text { May } & 2,000 & \text { Nov } & 5,700 \\\hline \text { J une } & 2,000 & \text { Dec } & 7,000 \\\hline\end{array}$$

• A)3,000
• B)2,200
• C)1,800
• D)2,500

---

Definitions:

Prices

The monetary value necessary to acquire a good, service, or asset.

Marginal Revenue

The rise in income generated by selling an extra unit of a product.

Cheese

A dairy product derived from milk and produced in a wide range of flavors and textures through the process of coagulation.

Marginal Revenue

The increased income from the sale of one more unit of a product or service.