Fairway's April Sales Forecast Projects That 6,000 Units Will Sell

question 51

Multiple Choice

Fairway's April sales forecast projects that 6,000 units will sell at a price of $10.50 per unit. The desired ending inventory is 30% higher than the beginning inventory, which was 1,000 units. Budgeted purchases of units in April would be:

• A) 6,000 units.
• B) 7,000 units.
• C) 6,300 units.
• D) 7,300 units.
• E) Some other amount.

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Definitions:

Advertising

Advertising is the action of calling public attention to products, services, needs, etc., through paid announcements by an identified sponsor.

Business Transaction

Any activity or event that involves the exchange of goods, services, or funds between two or more parties that affects the financial position of a business.

Note

A written agreement or promissory note where one party agrees to pay another under specified conditions, often used in reference to loans or debts.

Assets

Resources owned by a business or individual deemed to have economic value and expected to provide future benefits.