Planning Systems, Has Forecast the Following Unit Sales and Production

question 68

Multiple Choice

Planning Systems, has forecast the following unit sales and production for the next year, by quarter: A finished unit requires one unit of material A and two units of material B. There should be enough material on hand at the end of each quarter to meet 20% of the next quarter's production needs. There are no work-in-process inventories.
How much material B must be purchased in quarter 1?

• A) 264
• B) 196
• C) 204
• D) 256

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Definitions:

Pricing Difference

The variation in pricing for the same or similar products and services in different markets or segments.

Price Discrimination

A pricing strategy where a seller charges different prices to different customers for the same product or service, potentially maximizing revenue by targeting individual willingness to pay.

Insurance Company

A business entity that provides financial protection against losses or damages in exchange for premium payments.

Airline Tickets

Documents or electronic records issued by airlines that confirm an individual’s right to a seat on a flight from one destination to another.