BoomBoom Company Produces Speaker Systems for Trucks

question 63

Multiple Choice

BoomBoom Company produces speaker systems for trucks. BoomBoom expects to sell 20,000 units in January, 25,000 units in February, and 22,000 units in March. Each unit is priced at $45. BoomBoom's desired ending inventory is 25% of the following month's sales. That requirement was met on January 1.
Each speaker system requires two boxes and 10 metres of wire. Boxes cost $5 each, and wire is $0.90 per metre. BoomBoom's desired ending raw materials inventory is 30% of the following month's production needs. On January 1, BooBoom had 9,000 boxes and 100,000 metres of wire in inventory.
-Refer to the Figure.What is BoomBoom's expected sales revenue for February?

• A)$45
• B)$20,000
• C)$900,000
• D)$1,125,000

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Definitions:

Duties

Obligations or tasks that an individual is required or expected to perform.

Registered Outstanding Mortgage

A mortgage that is officially recorded and remains unpaid or not fully discharged.

Mortgage Value

The amount of money lent by a mortgagee (lender) to a mortgagor (borrower) for which the property is used as security.

Purchase Price

The amount of money paid to buy a particular product or service.