Poriss Corporation Makes and Sells a Single Product Called a Yute

question 80

Multiple Choice

Poriss Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available:

All of these expenses (except depreciation) are paid in cash in the month they are incurred.
-If the budgeted cash disbursements for selling and administrative expenses for April total $144,390, then how many Debs does the company plan to sell in April?

• A)17,500 units
• B)18,250 units
• C)20,000 units
• D)19,300 units

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Definitions:

Cost of Capital

The vital rate of earnings a company must generate from its investment plans to preserve its standing in the market and appeal for investments.

Treasury Bills

Short-term government securities with maturities ranging from a few days to 52 weeks, sold at a discount from their face value.

Financial Option

A contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price.

Fixed Price

An agreed upon price for goods and services that remains constant, unaffected by the fluctuations in the market or resource costs.