A Company Provided the Following Information on Sales for the Coming

question 95

Multiple Choice

A company provided the following information on sales for the coming year: $\begin{array}{lrrrr}&\text { 1st Quarter }& \text { 2nd Quarter } &\text { 3rd Quarter } & \text { 4th Quarter }\\\text { Units } & 40,000 & 40,000 & 30,000 & 80,000 \\\text { Average selling price } & \$ 5 & \$ 5 & \$ 5 & \$ 6\end{array}$ Assuming that the beginning inventory is 3,000 units, and that the company policy is to have 25% of the next quarter's sales in ending inventory, which quarter will have the lowest production?

• A) Quarter 4
• B) Quarter 3
• C) Quarter 2
• D) Quarter 1
• E) All quarters have the same production

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Definitions:

Sampling Technique

A method used in statistical analysis to select a subset of individuals or items from a larger population to estimate characteristics of the whole population.

Population

The total number of people or organisms inhabiting a particular area or space, often studied in demographics and ecology.

Supplier Certification

A process ensuring suppliers meet predefined quality standards and requirements for products or services.

Lower Costs

The reduction of expenditure or expenses in the production, acquisition, or maintenance of goods and services without compromising quality.