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

question 83

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.
-How many futons will Contempo Futon budget to be produced in the three months?

• A)72,500 futons
• B)75,000 futons
• C)82,500 futons
• D)90,000 futons
• E)98,650 futons

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Definitions:

GDP Deflator

An indicator representing the price levels of all newly domestically made final products and services within a country, utilized to convert nominal GDP into real GDP.

Net Domestic Product

The total value of all goods and services produced within a country's borders in a given time period, after accounting for depreciation.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate picture of an economy's size and how it's growing over time.

National Income

The total income earned by a country's residents and businesses, including wages, rent, interest, and profits.