Noel Enterprises Has Budgeted Sales in Units for the Next

question 122

Multiple Choice

Noel Enterprises has budgeted sales in units for the next five months as follows:
$\begin{array} {| l | r |} \hline \text { January } & 6,800 \text { units } \\\hline \text { February } & 5,400 \text { units } \\\hline \text { March } & 7,200 \text { units } \\\hline \text { April } & 4,600 \text { units } \\\hline \text { May } & 3,800 \text { units } \\\hline\end{array}$ Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on December 31 contained 400 units. The company needs to prepare a production budget for the second quarter of the year.


-What is the desired ending inventory for March?

• A) 380 units.
• B) 460 units.
• C) 540 units.
• D) 720 units.

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Definitions:

Calories Needed

the amount of energy required by an individual to maintain their body's functions and perform daily activities.

Corpus Callosum

A thick band of nerve fibers that divides the cerebral cortex lobes into left and right hemispheres, facilitating communication between the two sides of the brain.

Nerve Fibers

Long, slender projections of nerve cells that transmit electrical impulses between parts of the nervous system and to muscles or organs.

Hemispheres

The two halves of the brain, the right and left hemispheres, each responsible for different functions and cognitive processes.