1. The following limited sales forecast and budgeted production is available for XYZ Manufacturing Company:

	Jan	Feb	March
Sales (units)	100	150	200
Production (units)	119	169

XYZ has maintained ending finished goods inventory at a constant % of the following one month's sales needs for the past several months, and has incorporated this % in the above budgeted production.

What % of the following one month's sales needs is to be maintained in ending inventory?

Group of answer choices

Cannot determine with this limited information

9.5%

12.67%

38%

2. This month Ashford Company is planning on selling 3,000 units of product A for $10.00 per unit to regular customers. Variable costs to produce product A are $4.00 per unit for materials, $1.5 per unit for labor, and $1.00 per unit for variable overhead. For delivery this same month, a chain store placed a special order for 2,500 units of product A, and offered to pay $8.00 per unit. Ashford has the capacity to produce 5,000 units per month.

Group of answer choices

$ 3,750 profit

$14,250 profit

$ 2,000 profit

$ 1,250 loss