The Carlquist Company Makes and Sells a Product Called Product $\bullet$

question 34

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:

$\bullet$ Sales of $1,152,200,all in cash.
$\bullet$ A cash balance on November 1 of $48,000.
$\bullet$ Cash disbursements (other than interest) during November of $1,160,000.
$\bullet$ 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

---

Definitions:

Instructing Messages

Instructions communicated through various mediums intended to guide or direct behaviors or actions.

Adjusting Messages

The process of modifying communication to better fit the audience, context, or feedback received, enhancing understanding and effectiveness.

Lectern

A stand or a small platform used to support reading notes or books, typically used by a speaker in a public speaking event.

Paraphrase

The act of rewording or rephrasing text or speech to retain the original meaning while altering the structure.