The Sales Budget for Modesto Corp

question 164

Multiple Choice

The sales budget for Modesto Corp.shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12,respectively.The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units.The beginning inventory of Product B is 2,500 units.The desired ending inventory of Product B is 3,000 units.Budgeted purchases of Product A for the year would be:

• A)22,400 units.
• B)20,400 units.
• C)20,000 units.
• D)19,500 units.
• E)12,200 units.

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Definitions:

Sellers/Lessors

Sellers or lessors are individuals or entities that provide goods or property for sale or lease to buyers or lessees, respectively.

Buyers/Lessees

Individuals or entities that purchase or lease goods and services.

Specific Performance

A legal remedy requiring a party to execute a contract according to its precise terms.

Seller

An individual or entity that offers goods or services for sale to a buyer in exchange for compensation.