Super Drive Is a Computer Hard Drive Manufacturer $£ 520,000$ For December And

question 25

Multiple Choice

Super Drive is a computer hard drive manufacturer. The company's balance sheet for the fiscal year ended on November 30 appears below:
Additional information regarding Super Drive's operations appear below:*Sales are budgeted at $£ 520,000$ for December and $£ 500,000$ for the upcoming year.
*Collections are expected to be $60 \%$ in the month of sale and $40 \%$ in the month following sale. There are no bad debts.
*80\% of the disk drive components are purchased in the month prior to the month of the sale, and $20 \%$ are purchased in the month of the sale. Purchased components comprise $40 \%$ of the cost of goods sold.
*Payment for components purchased is made in the month following the purchase.
*Assume that the cost of goods sold is $80 \%$ of sales.
- The budgeted gross margin for the month ending December 31 would be

• A)£416,000.
• B)£104,000.
• C)£134,000.
• D)£536,000.

---

Definitions:

Preceding Explanation

An explanation or description that comes before another part of text, providing necessary background information.

Bad-News Messages

Communications designed to convey information that might be disappointing, unwelcome, or unfavorable to the receiver, handled with care to mitigate negative reactions.

Negative-News Situation

A scenario where unpleasant information has to be communicated, often requiring careful word choice and tone.

Preliminary Explanation

An initial statement or rationale provided to give background or context before the main discussion, argument, or presentation.