Freeman Company Plans to Sell 65,000 Units in June and 72,500

question 53

Multiple Choice

Freeman Company plans to sell 65,000 units in June and 72,500 units in July.Freeman's policy is to keep 30% of the next month's sales in ending inventory.If the ending inventory in May was consistent with this policy,how many units should be produced in June?

• A)86,750 units
• B)106,250 units
• C)67,250 units
• D)62,750 units
• E)None of the answer choices is correct.

Utilize the internal rate of return (IRR) and profitability index in comparing and selecting projects.

Recognize and differentiate between capital budgeting methods that consider and do not consider the time value of money.

Understand the definition and role of relevant costs in decision-making.

Identify and differentiate between types of costs and their relevance to managerial decisions.

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Definitions:

Underemployed

Refers to individuals who are employed at a job that does not utilize their skills, education, or availability to the fullest, often resulting in working fewer hours than desired.

Skilled Worker

An individual who has specialized training, knowledge, and abilities in a particular field or occupation, often requiring formal qualifications.

Low-Skill Job

Employment that requires minimal specialized skills or education, often characterized by lower wages and typically involving manual or routine tasks.

Developing Country

A nation with a lower level of industrialization, lower living standards, and lower Human Development Index (HDI) compared to developed countries.