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Connor Company Produces Speaker Systems for Cars

Question 82

Multiple Choice

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.
- How many boxes does Connor expect to purchase in January?


A) 159,650
B) 114,420
C) 214,550
D) 148,500
E) 138,420

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