The Carlquist Company Makes and Sells a Product Called Product

question 10

Multiple Choice

The Carlquist 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 $1,152,200, 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

Learn communication techniques for effective cross-cultural interaction.

Understand the relationship between cultural beliefs and practices in shaping individual and group behaviors.

Understand how to enhance presentations with various multimedia elements, including pictures, SmartArt, audio clips, and 3-D models.

Master the process of editing audio and video clips within presentations, including cropping and compressing files.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive, reflecting the benefit to producers from higher prices.

Consumer Surplus

The gap between what consumers are prepared to spend on a product or service and the actual amount they end up paying.

Maximum Willingness

The highest amount an individual is prepared to pay for a good or service, reflecting their subjective valuation of its utility.

Output

The total amount of goods and services produced by an economic system or by a firm.