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Question - Next year's sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of B is 3,000 units.
Total budgeted sales of both products for the year would be:
a) $ 42,000.
b) $200,000.
c) $264,000.
d) $464,000.
e) $500,000
You plan to borrow $423,000 now and repay it in 20 equal annual installments. If the annual interest rate is 10%, how much will your annual payments be?
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