Answer the Following Questions Using the Information Below

question 228

Multiple Choice

Answer the following questions using the information below:
Furniture, Inc., estimates the following number of mattress sales for the first four months of 2012:
Finished goods inventory at the end of December is 3,000 units. Target ending finished goods inventory is 30% of the next month's sales.
-How many mattresses need to be produced in the first quarter (January, February, March) of 2012?

• A)37,000 mattresses
• B)38,800 mattresses
• C)41,800 mattresses
• D)44,800 mattresses

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Definitions:

Circular-Flow Diagram

A diagram that represents the transactions in an economy by two kinds of flows around a circle: flows of physical things such as goods or labor in one direction and flows of money to pay for these physical things in the opposite direction.

Output

In economics, output refers to the total amount of goods or services produced by a firm or country.

Factor of Production

An input used in the production of goods and services, such as land, labor, capital, and entrepreneurship.

Machines

Mechanical or electronic devices that perform tasks, often complex, without human intervention.