Figure 9-10

Figure 9-10. 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 percent 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 percent 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.
Refer to Figure 9-10.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

Correct Answer:

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