Reference: 20_01 Next Year's Sales Forecast Shows That 20,000 Units of Product

question 29

Multiple Choice

Reference: 20_01
Next year's sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of B is 3,000 units.
-Budgeted purchases of Product A for the year would be:

• A) 22,400 units
• B) 20,400 units
• C) 20,000 units
• D) 19,500 units
• E) 12,200 units

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Definitions:

Tick

A small arachnid that feeds on the blood of mammals, birds, and sometimes reptiles and amphibians, known for transmitting diseases such as Lyme disease.

Warts

Small, rough growths on the skin, typically caused by the human papillomavirus (HPV).

Causative Agent

A factor, often a microorganism, that causes disease.

Herpes Simplex Virus

A virus causing contagious sores, most often around the mouth (HSV-1) or on the genitals (HSV-2).