Sarrazin Corporation Is in the Process of Preparing Its Annual

question 138

Multiple Choice

Sarrazin Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Each unit of finished goods requires 8 grams of raw material.
-If the company plans to sell 640,000 units during the year, the number of units it would have to manufacture during the year would be:

• A) 670,000 units
• B) 640,000 units
• C) 690,000 units
• D) 590,000 units

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Definitions:

Deflation

A decrease in the general price level of goods and services, often causing an increase in the value of money.

Nominal Interest Rate

The stated or face interest rate of a loan or financial product, not adjusted for inflation.

Purchasing Power

The ability of an individual or group to buy goods and services with a given amount of money.

Bank Account

A financial account maintained by a financial institution for a customer, allowing the customer to deposit and withdraw money, and in many cases, earn interest.