Answer the Following Question(s) Using the Information Below

question 13

Multiple Choice

Answer the following question(s) using the information below.
Furniture Inc. estimates the following number of mattress sales for the first four months of 2013:
Finished goods inventory at the end of December 2012 is 1,500 units. Target ending finished goods inventory is 30% of the next month's sales.
-How many mattresses need to be produced in January 2013?

• A) 4,400 mattresses
• B) 5,000 mattresses
• C) 6,500 mattresses
• D) 7,100 mattresses
• E) 5,600 mattresses

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Definitions:

Owner Control

The level of power and authority held by the owner(s) of a business in making significant decisions about its operations.

Lessee

A person or entity that rents or leases property from another, known as the lessor, under the terms of a lease agreement.

Lessor

The party that leases or rents out a property or asset to another party, known as the lessee.

Contractual Agreement

A legally binding contract between two or more parties outlining terms and conditions of an agreement.