Use the Information Below to Answer the Following Question(s)

question 46

Multiple Choice

Use the information below to answer the following question(s) .
Layne Cedar manufactures cedar chests. The estimated number of chests for the first three months of 2012 is as follows:
Finished goods inventory at the end of December is 3,000 units. Ending finished goods are equal to 30 percent of next month's sales. April 2012 sales are expected to total 16,000 units.
-What should be the budgeted number of chests produced in January 2012?

• A) 8,800 chests
• B) 11,200 chests
• C) 13,000 chests
• D) 14,200 chests
• E) 14,700 chests

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Definitions:

Market Entry

The act of bringing a new product or service to market, including the challenges and strategies involved in successfully engaging with a new or existing market.

Resources

Resources refer to the inputs used in the production of goods and services, including natural resources, labor, and capital.

Profit Maximized

The point at which a firm or business achieves the highest level of profit possible with its current resources and market conditions.

Competitive Price-Taker Firm

A business that has no control over the market price and must accept the prevailing price set by market supply and demand conditions.