Watson Corporation Manufactures Boxes $\begin{array}{ll}\text { Month } & \text { Sales } \\\text { January } & 3,000 \\\text { February } & 4,200 \\\text { March } & 3,900\end{array}$

question 5

Multiple Choice

Watson Corporation manufactures boxes. The estimated numbers of boxes sold for the first three months of 2014 are as follows: $\begin{array}{ll}\text { Month } & \text { Sales } \\\text { January } & 3,000 \\\text { February } & 4,200 \\\text { March } & 3,900\end{array}$ Finished goods inventory at the end of December was 600 units. Ending finished goods inventory is equal to 20% of the next month's sales. Watson Corporation expects to sell the boxes for $5 each. April 2014 sales are projected at 4,500 boxes. How many boxes should be produced in February?

• A) 4,140 boxes
• B) 4,200 boxes
• C) 4,260 boxes
• D) 3,900 boxes

Recognize the role of government intervention in correcting market failures and achieving efficiency.

Identify factors that lead to market efficiency and the incentives built into market economies.

Understand the trade-off between equity and efficiency in the allocation of resources.

Comprehend how the principle of gains from trade operates within and benefits an economy.

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Definitions:

Reabsorption

The process in the kidneys where nutrients, water, and essential ions are reabsorbed into the bloodstream from filtered fluid.

Secretion

The process by which substances are produced and discharged from a cell or gland.

Urine Concentration

The process by which the kidneys regulate the electrolyte balance and water content in the body by adjusting the volume and concentration of urine.

Antidiuretic Hormone

A hormone also known as vasopressin that helps control the balance of water in the body by reducing the amount of water excreted in the urine.