Stritch Company Is Trying to Decide How Many Units of Merchandise

question 141

Multiple Choice

Stritch Company is trying to decide how many units of merchandise to order each month. The company's policy is to have 20% of the next month's sales in inventory at the end of each month. Projected sales for August, September, and October are 30,000 units, 20,000 units, and 40,000 units, respectively. How many units must be purchased in September?

• A) 14,000.
• B) 20,000.
• C) 22,000.
• D) 24,000.
• E) 28,000.

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Definitions:

Chattel

Personal property that is tangible and movable, as opposed to real estate or immovable property.

Tangible Personal Property

Physical property that can be touched and moved, such as furniture, vehicles, and equipment.

Intellectual Property

Various legal rights that grant creators control over their intellectual creations, such as patents, copyrights, trademarks, and trade secrets.

Registration System

A systematic process of recording information or data into an official list or database to ensure its authenticity and reliability.