Nantucket Industries Manufactures and Sells Two Models of Watches,Prime and Luxuria.It

question 191

Multiple Choice

Nantucket Industries manufactures and sells two models of watches,Prime and Luxuria.It expects to sell 3,800 units of Prime and 1,300 units of Luxuria in 2019.The following estimates are given for 2019:

Nantucket had an inventory of 240 units of Prime and 125 units of Luxuria at the end of 2018.It has decided that as a measure to counter stock outages it will maintain ending inventory of 350 units of Prime and 230 units of Luxuria.
Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $13.There were 140 units of Crimpson in stock at the end of 2018.The management does not want to have any stock of Crimpson at the end of 2019.
What is the total budgeted cost of goods manufactured in 2019?

• A)$1,153,000
• B)$1,093,350
• C)$1,212,650
• D)$1,272,750

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Definitions:

Multiplier

A factor by which an initial change in spending will alter total economic output by a greater amount.

National Debt

The cumulative amount of money that a government owes to creditors, both domestic and foreign, as a result of borrowing to cover budget deficits.

National Debt

National debt is the total amount of money that a country's government has borrowed, through various means, including foreign governments and domestic investors.

Multiplier

In macroeconomics, a factor that quantifies the effect of increased investment or spending in an economy, typically leading to a proportionally greater increase in income or output.