Connor Company produces speaker systems for cars.Estimated sales (in units) in January are 40,000; in February 37,000; and in March 34,000.Each unit is priced at $60.Connor wants to have 35% of the following month's sales in ending inventory.That requirement was met on January 1. Each speaker system requires 3 boxes and 15 yards of wire.Boxes cost $4 each and wire is $0.60 per yard.Connor wants to have 20% of the following month's production needs in ending raw materials inventory.On January 1, Connor had 24,000 boxes and 100,000 yards of wire in inventory.
-What is Connor's expected sales revenue for February?
A) $2,020,000
B) $1,900,000
C) $60
D) $1,125,000
E) $2,220,000
Correct Answer:
Verified
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