Sarrazin Corporation Is in the Process of Preparing Its Annual

question 74

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.
-How much of the raw material should the company purchase during the year?

• A) 4,720,000 grams
• B) 4,700,000 grams
• C) 4,730,000 grams
• D) 4,740,000 grams

---

Definitions:

Future Consumption

The use of goods or services at a later date, often facilitated by saving or investing in the present.

Productivity of Capital Goods

The effectiveness with which capital goods, such as machinery and equipment, produce goods or services.

Loanable Funds

The money available for borrowing in the financial market, originating from people or entities who save some part of their income.

Equilibrium Interest Rate

The equilibrium interest rate is the interest rate at which the quantity of money demanded equals the quantity of money supplied, balancing savings and investments in the economy.