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

question 8

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 will budgeted net income be for March?

• A)$1,638,000
• B)$714,000
• C)$657,300
• D)$184,800
• E)None of the answer choices is correct.

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Definitions:

Social Acceptance

The process by which an individual gains approval, inclusion, or acknowledgment within a group or society.

Nonhuman Animals

Refers to all animals except humans, highlighting the biological and psychological study of animal behavior and cognition.

Need To Belong

The desire to form and maintain close, lasting relationships with other individuals.

Social Acceptance

The approval of a social group or society, often based on adherence to group norms or standards.