The Arkansas Company Makes and Sells a Product Called Product

question 34

Multiple Choice

The Arkansas Company makes and sells a product called Product K.Each unit of Product K sells for $24 dollars and has a unit variable cost of $18.The company has budgeted the following data for November: • Sales of $1,152,000,all in cash.• A cash balance on November 1 of $48,000.• Cash disbursements (other than interest) during November of $1,160,000.• A minimum cash balance on November 30 of $60,000.If necessary,the company will borrow cash from a bank.The borrowing will be in multiples of $1,000 and will bear interest at 2% per month.All borrowing will take place at the beginning of the month.The November interest will be paid in cash during November.The amount of cash needed to be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 cash balance is:

• A) $20,000.
• B) $21,000.
• C) $37,000.
• D) $38,000.

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Definitions:

Collectivism Societal

A societal orientation that emphasizes the priority of group goals over individual goals and the importance of cohesion within social groups.

Synergy

The increased effectiveness or achievement that results when individuals or groups work together compared to when they work separately.

Stereotyping

The act of ascribing a fixed, oversimplified, and often exaggerated or prejudiced image or idea to a person or group.

Win-Win

A situation or outcome where all parties involved gain or achieve benefit.