Bear, Inc. estimates its sales at 200,000 units in the first quarter - 14731

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yousafbhutta

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  • Posted on: Wed 14 Nov, 2012
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Request Description

 

Bear, Inc. estimates its sales at 200,000 units in the first quarter and that sales will

 

increase by 20,000 units each quarter over the year. They have, and desire, a 25%

 

ending inventory of finished goods. Each unit sells for $35. 40% of the sales are for

 

cash. 70% of the credit customers pay within the quarter. The remainder is received in

 

the quarter following sale.

 

Production in units for the third quarter should be budgeted at

 

A) 245,000.

 

B) 230,000.

 

C) 305,000.

 

D) 240,000

Solution Description

 

Bear, Inc. estimates its sales at 200,000 units in the first quarter and that sales will

 

increase by 20,000 units each quarter over the year. T