Shortie Company Produces Two Products: X Brand and Y Brand

question 21

Multiple Choice

Shortie Company produces two products: X Brand and Y Brand. Budgeted sales for four months are as follows:
Shortie's ending inventory policy is that X Brand should have 10% of its next month's sales in ending inventory and Y Brand should have 20% of next month's sales in its ending inventory. On May 1, Shortie's inventory had 1,000 units of X Brand and 9,000 units of Y Brand.Y Brand requires four units of component A. (X Brand does not use component A.) On May 1, 2,100 units of component A were in inventory. Shortie wants to have 30% of the following month's production needs in inventory for component a. $\begin{array}{lll}&\text { X Brand }&Y \text { Brand }\\\text { May } & 10,000 & 40,000 \\\text { June } & 20,000 & 70,000 \\\text { July } & 15,000 & 80,000 \\\text { August } & 30,000 & 90,000\end{array}$
-Refer to the Figure.How many units of component A are budgeted to be purchased in May?

• A)64,500
• B)66,600
• C)180,000
• D)264,300

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Definitions:

Herzberg's Two-Factor Theory

A motivational theory that suggests job satisfaction and dissatisfaction arise from two different sets of factors – hygiene factors and motivators.

McClelland's Acquired Needs Theory

A motivational theory suggesting that individuals are driven by three primary needs: achievement, affiliation, and power, which are acquired over time.

Maslow's Love/Belongingness

A concept from Maslow's hierarchy of needs that emphasizes the human need for interpersonal relationships, feeling loved, and belonging to a group.

ERG Theory

A theory on human motivation that categorizes needs into three groups: Existence, Relatedness, and Growth.