BoomBoom Company Produces Speaker Systems for Trucks

question 93

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.How many units does BoomBoom expect to produce in February?

• A)20,000
• B)23,750
• C)24,250
• D)25,000

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