Super Drive Is a Computer Hard Drive Manufacturer

question 48

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 January.
• 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:

Qualitative Variable

A variable that describes or categorizes an attribute or quality of an element, often represented as names or labels and not quantifiable.

Numerically

Pertaining to numbers, or expressed in numbers, often relating to numerical data or mathematical calculations.

Bivariate Data Set

A type of data that involves two variables and is used to find relationships or patterns between them.

Qualitative Variable

A variable that describes non-numeric categories or characteristics.