XYZ Co Has Forecasted June Sales of 400 Units and July

question 73

Multiple Choice

XYZ Co. has forecasted June sales of 400 units and July sales of 700 units. The company maintains ending inventory equal to 125% of next month's sales. June beginning inventory reflects this policy. What is June's required production?

• A) 750 units
• B) 0 units
• C) 775 units
• D) 400 units

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Definitions:

OPEC Policies

OPEC policies are strategies and guidelines adopted by the Organization of Petroleum Exporting Countries to regulate the oil supply in the global market to stabilize oil prices.

Cyclical Unemployment

Unemployment attributed to the natural fluctuations in the economy tied to the business cycle, with higher unemployment during recessions and lower during expansions.

Overall Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment within the total economy.

Unemployment

A condition where individuals who are capable of working and are actively seeking work are unable to find employment.