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

question 12

Multiple Choice

Consider the estimated aggregate demand for a company's ski product line for the upcoming year in the following table.Calculate the inventory holding costs for the month of March using the level production strategy.Assume the regular time production cost as $200/pair of skis,the average monthly inventory holding cost as $20/pair of skis per month,and 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)$5,000
• B)$7,500
• C)$10,000
• D)$20,000

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Definitions:

Overcoming Objections

The practice of addressing and resolving potential concerns or hesitations that prospects may have about a product or service.

Sales Calls

Telephone or in-person visits made by salespersons to potential buyers for the purpose of marketing or selling a product or service.

Sales Call Objective

The specific goal or purpose a salesperson aims to achieve during a sales call, such as introducing a new product, gathering customer feedback, or closing a sale.

Prospect

A prospective client or customer who shows interest in a company's offerings.