Noel Enterprises Has Budgeted Sales in Units for the Next

question 20

Multiple Choice

Noel Enterprises has budgeted sales in units for the next five months as follows: Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on May 31 contained 400 units. The company needs to prepare a production budget for the second quarter of the year. The total number of units to be produced in July is:

• A)5,580 units
• B)5,400 units
• C)6,120 units
• D)5,220 units

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Definitions:

Actual Authority

The express and implied powers given by a principal to an agent to enter into contracts or take action on the principal's behalf.

Good Faith

A sincere intention to deal fairly with others without any intention to defraud or seek an unfair advantage.

Duty Of Obedience

The legal or ethical obligation of individuals to act in accordance with the laws, rules, or regulations that govern their behavior or role, particularly in organizational or fiduciary contexts.

Authorized Contract

An authorized contract is a legal agreement that has been approved and executed by individuals or entities who have the legal capacity and authority to do so.