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XYZ Has Budgeted to Sell 100 000 Units of P

question 2

Multiple Choice

XYZ has budgeted to sell 100 000 units of P for February 2008. It has an opening inventory of 20 000 units of P and would like a closing inventory of 30 000 units. Each unit of P requires 2 kg of raw material Y. Inventory of Y at the beginning of the month is 5000 kg. Assuming the sales budget is met and the desired closing inventory of P is achieved, how many kilograms of Y need to be purchased during February, in order to have a closing balance of 8000 kg?

Definitions:

Private Goods

Products and services that are exclusive and distinctly owned, with their use limited to the owner or individuals who have permission.

Corporate Form

A business structure where owners have limited liability, and the entity is recognized legally as separate from its owners.

Limited Liability

A legal structure for businesses that limits the personal financial responsibility of the owners for the company's debts and obligations.

Externalities

Financial repercussions impacting parties who are not directly involved, which may manifest as either beneficial or detrimental outcomes.