A June Sales Forecast Projects That 6,000 Units Are Going

question 87

Multiple Choice

A June sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. The desired ending inventory of units is 15% higher than the beginning inventory of 1,000 units. Total June sales are anticipated to be:

• A) $63,000.
• B) $67,500.
• C) $61,250.
• D) $74,250.
• E) $60,000.

Calculate and interpret variances in budgeting, including spending, revenue, and operating income variances.

Differentiate between fixed, variable, and mixed costs and their roles in budgeting.

Apply flexible budgeting techniques to adjust budgets according to actual activity levels.

Analyze the impact of activity level changes on budgeted and actual costs.

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Definitions:

Stimulant

A substance that raises levels of physiological or nervous activity in the body, often used to increase alertness, attention, and energy.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Nicotine

A potent chemical found in tobacco plants that is highly addictive and stimulates the brain when inhaled or ingested.

Stimulant

A substance that raises levels of physiological or nervous activity in the body, often used to increase alertness, attentiveness, and energy.