Noel Enterprises Has Budgeted Sales in Units for the Next

question 147

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 desired ending inventory for August is:

• A)720 units
• B)460 units
• C)540 units
• D)380 units

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Definitions:

Stethoscope

A medical instrument used by healthcare professionals to listen to internal body sounds, such as the heartbeat or breathing.

Spirometer

A medical instrument used to measure the volume of air inhaled and exhaled by the lungs, commonly used in diagnosing respiratory disorders.

Otoscope

A medical device used to look into the ears, allowing for the examination of the ear canal and tympanic membrane.

Mensuration

The process of measuring.