Answer the Following Question(s)using the Information Below

question 43

Multiple Choice

Answer the following question(s) using the information below.
Furniture Inc.estimates the following number of mattress sales for the first four months of 2016:
Finished goods inventory at the end of December 2015 is 1,500 units.Target ending finished goods inventory is 30% of the next month's sales.
-How many mattresses need to be produced in January 2016?

• A)4,400 mattresses
• B)5,000 mattresses
• C)6,500 mattresses
• D)7,100 mattresses
• E)5,600 mattresses

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Definitions:

Limited Information

Situations or decisions made where the available data or knowledge is incomplete.

Perfect Rationality

The assumption or condition under which individuals make decisions that are entirely logical and optimize their self-interest.

Turnover

The rate at which employees leave a company and are replaced by new employees, affecting the company's performance and morale.

Decision-Making Error

Mistakes or flaws in the process of choosing between alternatives that can lead to suboptimal or harmful outcomes.