Marjen Manufacturing Has Purchases Equal to 40% of Sales

question 11

Multiple Choice

Marjen Manufacturing has purchases equal to 40% of sales.They purchase one month prior to sales and pay one month after sales.Given the following sales forecast,calculate Marjen's payments for March.

• A)$40,000
• B)$60,000
• C)$80,000
• D)$100,000

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Definitions:

Total Fixed Costs

The sum of all costs required to produce any amount of a product that does not change with the level of production.

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials and labor.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Car Washes

Businesses or services dedicated to cleaning vehicles, both internally and externally, often offering various levels of service.