Produce Company Needs to Know the Pounds of Apples to Have

question 193

Essay

Produce Company needs to know the pounds of apples to have on hand each day.Each pound of apples costs $0.50 and can be sold for $0.80.Unsold apples are worthless at the end of the day.The following demands were found after studying the last six months' sales:
200 pounds of apples 30% of the time
300 pounds of apples 40% of the time
400 pounds of apples 30% of the time
Required:
Determine whether Produce Company should order 200,300,or 400 pounds of apples.

---

Definitions:

Vertical Analysis

A method in financial statement analysis where each item is represented as a percentage of a base figure within the same statement.

Total Assets

The sum of all current and non-current assets owned by a company, showing the total resources available for use.

Component

A part or element of a larger system, product, or set of operations that contributes to the overall function.

Entity

A broad term that can refer to any individual, company, organization, or institution that has a separate legal existence.