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Each Speaker System Requires 3 Boxes and 15 Yards of Wire

Question 121

Multiple Choice

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.
-Refer to Figure 9-11. What is Pallen's budgeted operating income?


A) $281,000
B) $39,000
C) $198,000
D) $83,000
E) $440,000

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