Answer the Following Question(s)using the Information Below

question 35

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 the first quarter (January,February,March) of 2016?

• A)18,500 mattresses
• B)19,400 mattresses
• C)20,900 mattresses
• D)22,400 mattresses
• E)18,000 mattresses

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Definitions:

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.

Marginal Cost

The increase in total cost that arises from producing an additional unit of a good or service.

Marginal Benefit

The extra pleasure or benefit gained from consuming an additional unit of a product or service.

Marginal Cost

The added financial burden of producing another unit of a product or service.