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Shortie Company Produces Two Products: X Brand and Y Brand

Question 75

Multiple Choice

Shortie Company produces two products: X Brand and Y Brand. Budgeted sales for four months are as follows:
Shortie's ending inventory policy is that X Brand should have 10% of its next month's sales in ending inventory and Y Brand should have 20% of next month's sales in its ending inventory. On May 1, Shortie's inventory had 1,000 units of X Brand and 9,000 units of Y Brand.Y Brand requires four units of component A. (X Brand does not use component A.) On May 1, 2,100 units of component A were in inventory. Shortie wants to have 30% of the following month's production needs in inventory for component a.  X Brand Y Brand  May 10,00040,000 June 20,00070,000 July 15,00080,000 August 30,00090,000\begin{array}{lll}&\text { X Brand }&Y \text { Brand }\\\text { May } & 10,000 & 40,000 \\\text { June } & 20,000 & 70,000 \\\text { July } & 15,000 & 80,000 \\\text { August } & 30,000 & 90,000\end{array}
-Refer to the Figure.How many units of X Brand are budgeted for production in May?


A) 10,000
B) 11,000
C) 12,000
D) 13,000

Correct Answer:

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