Thurston Products Thurston Products sells a popular style of running shoe. The company has prepared the following sales forecast for the second quarter of 2012: April 50,000 pairs May 120,000 pairs June 145,000 pairs Ending inventory at March 31, 2012 was budgeted at 7,500 pairs. Management would like the desired quantity of finished goods inventory at the end of each month to be equal to 15
percent of next month's budgeted unit sales. July's sales are projected to be 135,000 pairs. Each completed unit of finished product requires 2 pounds of rubber material at a cost of $1.75 per pound. The company has determined that it needs 20 percent of next month's raw material needs on hand at the end of each month. Refer to the Thurston Products information above. The total required production of running shoes for the second quarter of 2012 is:
A) 315,000 pairs
B) 327,750 pairs
C) 302,250 pairs
D) 287,250 pairs
B
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One of the basic requirements for an instrument to be negotiable is that it must be payable:
A. to a specific person. B. "to order" or "to bearer." C. on fulfillment of a conditional promise. D. in cash or kind.
On July 1 of the current year, a company paid $200,000 to purchase 7%, 10-year bonds with a par value of $200,000; interest is paid semiannually on June 30 and December 31. The company intends to hold the bonds until they mature. Prepare the journal entries to record (1) the bond purchase, (2) the receipt of the first semiannual interest payment on December 31 of the current year, and (3) the receipt of the second semiannual payment on June 30.
What will be an ideal response?
The prices of high-coupon bonds tend to be less sensitive to a given change in interest rates than low-coupon bonds, other things held constant.
Answer the following statement true (T) or false (F)
The more specific the firm's advertising objectives, the
A. more difficult it is for a competitor to use competitive parity budgeting. B. more difficult it is for competitors' advertising to be effective. C. lesser the funding needed to meet advertising goals. D. easier it becomes to measure advertising effectiveness. E. easier it is to measure the advertising-sales response function.