For Next Year,David Company Has Budgeted Sales of 8,000 Units,target

question 81

Multiple Choice

For next year,David Company has budgeted sales of 8,000 units,target ending inventory of 1,000 units and a beginning inventory of 300 units.How many units should be purchased?

• A) 5,700
• B) 6,300
• C) 7,700
• D) 8,700

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Definitions:

Unit Elastic

A situation in demand or supply where the elasticity is exactly one, indicating that a change in price results in a proportionate change in the quantity demanded or supplied.

Total Revenue

The total amount of money received by a firm from selling its goods or services.

Price Elastic

Describes how sensitive the demand for a good or service is to changes in its price.

Income Elasticity

A measure of how much the demand for a good or service changes in response to a change in the income of consumers.