The TS Corporation Has Budgeted Sales for the Year as Follows

question 44

Multiple Choice

The TS Corporation has budgeted sales for the year as follows: The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units.The finished goods inventory at the start of the year is 2,500 units.Four pounds of raw materials are required for each unit produced.Raw materials on hand at the start of the year total 4,200 pounds.The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in material. Scheduled production for the third quarter should be:

• A)14,500 units
• B)18,500 units
• C)15,500 units
• D)13,500 units

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Definitions:

Availability

The state of being accessible or obtainable; in commerce, refers to how readily a product or service can be found or provided.

Pricing

The process of determining the value that will be charged for goods or services offered to customers.

Employing Mystery Shoppers

A strategy used by businesses involving undercover shoppers hired to evaluate customer service, product quality, and overall experience discreetly.

IKEA

A multinational conglomerate that designs and sells ready-to-assemble furniture, kitchen appliances, and home accessories, among other goods and home services.