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

question 151

Multiple Choice

Use the information below to answer the following question(s) .Contempo Futon manufactures futons.The estimated number of sales for the last quarter of 2018 is as follows:
Beginning finished goods inventory should be equal to 30 percent of that month's budgeted sales plus 10 percent of the following month's budgeted sales.January and February 2018 sales are anticipated to be 15,000 futons in each month.The cost to produce a futon is $125.
-What should be the number of futons Contempo Futon budgets to be produced in November?

• A)34,000 futons
• B)32,500 futons
• C)26,200 futons
• D)25,000 futons
• E)23,000 futons

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Definitions:

Levels of Uncertainty

Different degrees of unpredictability or lack of information about future events or outcomes.

Top Executives

Individuals who hold the highest level positions in organizations, responsible for making strategic decisions.

Organization's Environment

External factors, including economic, legal, technological, and social influences, that affect an organization’s performance and operations.

Environmental Uncertainty

The degree to which future states of the environment are unpredictable, making it difficult for organizations to anticipate changes.