Exhibit 9-2
Bowline Inc -Refer to Exhibit 9-2

question 54

Multiple Choice

Exhibit 9-2
Bowline Inc.is a distributor which sells one product for $60 per unit.Bowline pays $33 to buy the product.In addition,fixed costs total $42,000 per month.Bowline wishes to maintain an inventory at the end of each month equal to 25% of the next month's projected sales.Purchases are paid in the month after purchase.
Bowline makes all sales on credit and collects 30% in the month of sale and 70% in the month after sale.Budgeted monthly sales in units for the first five months of 2013 are as follows:
$\begin{array}{ll}\text { January } & 20,000 \text { units } \\\text { February } & 25,000 \text { units } \\\text { March } & 28,000 \text { units } \\\text { April } & 30,000 \text { units } \\\text { May } & 26,000 \text { units }\end{array}$
-Refer to Exhibit 9-2.What dollar amount of merchandise inventory will be purchased in April?

• A)$957,000
• B)$528,000
• C)$1,452,000
• D)$1,023,000
• E)None of the answer choices is correct.

---

Definitions:

Product Marketing

refers to the process of promoting and selling a product to the consumer, encompassing strategies and tactics used to identify the product's target market, communicate its value, and ensure its distribution.

Stock Brokerage

Firms that act as intermediaries between investors and securities exchanges, facilitating the buying and selling of stocks.

People Management

The practice of recruiting, training, and overseeing employees in a workplace to maximize their performance.

Services

Intangible products provided to consumers, such as repairs, entertainment, or consultation, which do not result in ownership of anything physical.