For Next Year,Roberto,Inc

question 28

Multiple Choice

For next year,Roberto,Inc.,has budgeted sales of 15,000 units,targeted ending finished goods inventory of 750 units,and beginning finished goods inventory of 450 units.All other inventories are zero.How many units should be produced next year?

• A) 14,700 units
• B) 15,000 units
• C) 15,300 units
• D) 16,200 units

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Definitions:

Contribution Format

A type of income statement format that separates fixed costs from variable costs to highlight the contribution margin.

Income Statement

A financial document that provides a summary of a company’s revenues, expenses, and profits/losses over a specific period, showing how the revenue is transformed into net income.

Variable Expenses

Expenses that vary directly with the amount of production or activity level.

Fixed Expenses

Costs that do not fluctuate with the volume of production or sales, remaining constant over a period, such as rent, salaries, and insurance premiums.