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.

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Definitions:

Xylem

A type of tissue in plants responsible for transporting water and nutrients from the roots to other parts of the plant.

Primary Growth

Growth in plants resulting from cell division in the apical meristems, leading to an increase in height and length of the plant.

Terminal Bud

The primary area of growth in most plants, typically found at the tip of a stem where it can give rise to new tissue and extend the length of the stem.

Vascular Tissue

The system of tubes in plants that conducts water, minerals, and nutrients.