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

Comprehend the complexities involved in the evaluation and execution of corporate acquisitions and mergers.

Understand the regulatory and ethical considerations in mergers and acquisitions.

Recognize the role of joint ventures and strategic alliances in corporate strategies.

Understand the factors that influence obedience and how to manipulate them to decrease obedience rates.

---

Definitions:

Population Standard Deviation

Measures the dispersion of a set of data points in a population from its mean, indicating how spread out the data points are.

Interval Estimate

An estimate of a population parameter that provides a range of values believed to contain the parameter with a certain level of confidence.

Population Mean

The average of a set of values, taken from the entire population of data.

Confidence Level

The probability that a population parameter will fall between a set of values for a certain proportion of times.