Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
To meet the target the projected output level for next year required is 712,750.
What is sales budget ?
A sales budget is a financial strategy that projects the entire income of a business over a given time frame. To forecast the performance of the company, it relies on two factors: the volume of products sold and the price at which they are sold.
The calculation of the production level required to accomplish the goals for the following year is presented below:
Ending Inventory (662,000 ÷ 12 × 1.5) 82,750
Sales Budget 662,000
Total inventory required 744,750
Less Beginning Inventory -32,000
Production 712,750
Question:
Waterloo, Ltd. manufactures a component used in aircraft navigation systems. Demand has been strong and the executive staff at Waterloo is planning for next year. Yesterday, you were called into a budgeting meeting where production plans are being reviewed. You learn that the inventory policy at Waterloo is to hold one and one-half months’ worth of sales (to avoid issues with transportation disruptions). The sales budget for next year is 662,000 units, spread evenly over the year. Because of an unexpected increase in demand, inventory at the end of this year is expected to be only 32,000 units. The capacity of the plant is 702,000 units annually.1. What production level next year will be required to meet the targets? (Do not round intermediate calculations.)
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Answer: Option C
Explanation: Manufacturers refers to the entity producing a good while wholesaler are the second in supply chain who procures the product from manufacturer in bulk.
The retailer is the entity that deals with the final consumer in the market. The retailer creates value to the customer by making the product available in small distance, and in timely manner.
Thus, the retailer is sued by manufacturer and wholesaler as they create value to the customer.
Answer:
See below.
Explanation:
Solve for bottles at $50:
10 × 50
$500 per week
Solve for bottles at $45:
11 × 45
$495
Mr. Porter would make more money by sticking with selling 10 bottles a week at $50 each. This is because the latter requires him to sell one extra bottle and he will still lose $5.
Answer:
B. $36 billion
Explanation:
Since we were asked to calculate Wages. We can't use the Expenditure method of GDP. Method to be used would be the Income approach. In doing so, the values of export and import would be excluded. Therefore,
Given that
GDP = 65 billion
Profits = 7 billion
Rent = 7 billion
Interest payments = 15 billion
Recall that,
GDP = sum of income earned (profits, wages, rents, interests)
Thus,
Wages = GDP - Profits + rents + interests
= 65 - (15 + 7 + 7)
= 65 - 29
= 36 billion
Hence, wages during 2011 was $36 BILLION.
Note: Parameters used are based on the information in the question. It is important to note that income earned when using income approach could be more than the 4 stated parameters of wages, rent, profits and interests.
