question archive Our company makes and sells a single product
Our company makes and sells a single product
Subject:BusinessPrice: Bought3
Our company makes and sells a single product. We are currently working on our 2021 budgets. We started by estimating unit sales (data for January - April is below; March unit sales intentionally omitted): January February March April Estimated unit sales 74,000 93,000 102,000 We decided to continue maintaining our current inventory buffer policy: to require 30% of the month's unit sales in that month's beginning inventory. With this buffer policy, we estimated production numbers (data for January - April is below): January February March April Estimated production (units) 79,700 89,340 87,160 93,750 What are our estimated unit sales in March? 8 [5 points]. We are starting a new company on January 1, 2021. As part of our start-up planning, we are developing a cash budget for 2021: . On January 1, we plan to have $250,000 in cash for the launch of the start-up. We estimate our January sales at $200,000. We estimate that 10% of our sales will be in cash; the rest on credit. We estimate that 30% of credit sales will be collected in the month of the sale; the remaining 70% in the month after the sale. We estimate our total cash collected from credit sales in February at $185,400. Our estimated sales in February are closest to (rounded to the nearest thousand): A. $73,333 B. $198,000 C. $206,000 D. $220,000 E. $294,289
