Kenner's Ending Inventory Policy Is That SR200 Should Have 15

question 2

Multiple Choice

$\begin{array}{lrr}&\text { SR200 }&TX 500\\\text { May } & 8,000 & 20,000 \\\text { June } & 13,000 & 32,000 \\\text { July } & 11,000 & 39,000 \\\text { August } & 18,000 & 46,000\end{array}$ Kenner's ending inventory policy is that SR200 should have 15% of next month's sales in ending inventory and TX500 should have 40% of next month's sales in ending inventory. On May 1, there were 1,200 units of SR200 and 9,000 units of TX500.TX500 requires 6 units of component A. (SR200 does not use component A.) There were 30,000 units of component A in inventory on May 1. Kenner wants to have 20% of the following month's production needs in inventory for Component A.
-Refer to Figure 9-2. What is the budgeted production of SR200 for May in units?

• A) 8,750
• B) 9,950
• C) 8,000
• D) 1,200
• E) 10,500

---

Definitions:

Right Side of the Brain

The hemisphere of the brain that is often associated with creative thinking, intuition, and artistic abilities, contrasting with the left side's analytical and logical functions.

Hemispheric Specialization

The distinction in cognitive functions between the left and right hemispheres of the brain, where each hemisphere is specialized for certain tasks.

Glial Cells

Non-neuronal cells in the central nervous system that support, protect, and nourish neurons, playing a key role in maintaining homeostasis.

Neurons

Specialized cells within the nervous system that transmit information to other nerve cells, muscle, or gland cells.