A Company Has a Sales Forecast for the Following Five

question 22

Multiple Choice

A company has a sales forecast for the following five months as shown in the table.If they have a beginning inventory of 1225 units,what amount should be produced under a level plan in order for them to have an ending inventory of zero units at the end of the five month period?

• A) 1,435 units per month
• B) 1,595 units per month
• C) 1,385 units per month
• D) 1,515 units per month

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Definitions:

Dividend Per Share

The amount of dividend that a company pays out to its shareholders for each share they own.

Return on Equity

An indicator of a company's financial performance, showing the amount of profit generated per dollar of shareholders' investment.

Required Return

The minimum expected return an investor demands for investment in a specific asset, considering its risk profile.

Earnings

The profit a company makes after deducting its operating expenses, taxes, and costs from its revenue.