Lingstat Company Is Trying to Decide How Many Units of Merchandise

question 88

Multiple Choice

Lingstat Company is trying to decide how many units of merchandise to order each month.The company's policy is to have 15% of the next month's sales in inventory at the end of each month.Projected sales for August,September,and October are 5,000 units,6,000 units,and 4,000 units,respectively.How many units must be purchased in September?

• A) 6,600
• B) 6,150
• C) 5,850
• D) 5,700
• E) 6,300

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Definitions:

Divisional Grapevine

Informal and unofficial channels of communication within a specific division or area of an organization.

Mum Effect

Occurs when people are reluctant to communicate bad news.

Retribution

The infliction of punishment or penalty in response to wrongdoing, often seen as a form of justice.

Personal Mistakes

Errors or poor decisions made by an individual, often leading to learning opportunities.