Use the Information Below to Answer the Following Question(s)

question 25

Multiple Choice

Use the information below to answer the following question(s) .
Peabody Enterprises prepared the following sales budget:

The expected gross profit rate is 40% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold.
-What is the desired ending inventory on May 31 at Peabody Enterprises?

• A) $8,400
• B) $1,120
• C) $1,680
• D) $1,440

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Definitions:

Population

The total set of observations or data that can be collected or referenced in a statistical analysis.

Normal Probability Distribution

A symmetric, bell-shaped distribution that is characterized by its mean and standard deviation, representing the distribution of many types of data.

Rule of Thumb

A broadly applicable guideline or an easy generalization that is not necessarily very accurate but useful for making approximate judgments.

Cluster Sampling

A sampling method where the population is divided into clusters, and a random sample of these clusters is selected for study.