General Ltd

question 118

Multiple Choice

General Ltd. manufactures boxes. The estimated number of boxes sold for the first three months of 2001 are: Finished goods inventory at the end of December was 900 units. Ending finished goods inventory is equal to 20 percent of the next month's sales. General Ltd. expects to sell the boxes for £5 each. April 2004 sales is projected at 4,500 boxes.
What is the expected sales amount for March?

• A) £15,000
• B) £21,000
• C) £19,500
• D) £4,500

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Definitions:

Cyclical Unemployment

Unemployment that results from business cycle fluctuations in the economy, typically increasing during recessions and decreasing during expansions.

Idle Capacity

The portion of a business's resources that is not being utilized to its full potential in production or service delivery.

Aggregate Supply Curve

Represents the total supply of goods and services that firms in an economy are willing to sell at a given price level in a certain time period.

Upward Slope

In economics, it typically represents an increase or positive trend in a graph, such as rising prices or increasing production over time.