The Sales Budget for Carmel Shows That 20,000 Units of Product

question 117

Multiple Choice

The sales budget for Carmel shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of B is 3,000 units. Total budgeted sales of both products for the year would be:

• A) $42,000.
• B) $200,000.
• C) $264,000.
• D) $464,000.
• E) $500,000.

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Definitions:

Daily Settlement

The process of settling trades at the end of each trading day, including the calculation of gains and losses.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, in order to keep the account open.

Trader's Margin

The amount of equity contributed by a trader as a percentage of the current market value of the securities held in a trading account.

Established Value

The perceived worth or market value of an asset or company that has been recognized by investors or markets.