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The Managers of Jack Ltd Are Preparing a Production Budget

Question 1

Multiple Choice

The managers of Jack Ltd are preparing a production budget for December 201X. The sales budget for December 20X1 is 8,000 units dropping to 6,500 for January 20X2. The company's policy is to hold stocks of finished goods at 50% of the next month's sales. What is the production budget in units in December 20X1?


A) 6500
B) 5260
C) 7250
D) 8000

Correct Answer:

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