1. Which of the following is not one of the primary purposes of a budget? a. identifying a company's most profitable products b. evaluating performance c. planning d. controlling profit and operations e. facilitating communication and coordinating activities 2. On January 1, Colver Company has 6,500 units of Product A on hand. During the year, the company plans to sell 15,000 units of Product A, and plans to have 5,000 units on hand at year-end. How many units of Product A must be produced during the year? a. 13,500 b. 16,500 c. 15,000 d. 20,000 3. Douglas Company plans to sell 24,000 units of Product A during July and 30,000 units during August. Sales of Product A during June were 25,000 units. Past experience has shown that end-of-month inventory must equal 3,000 units plus 30% of the next month's sales. On June 30 this requirement was met. Based on these data, how many units of Product A must be produced during the month of July? a. 28,800 b. 22,200 c. 24,000 d. 25,800

1. Which of the following is not one of the primary purposes of a budget? a. identifying a company's most profitable products b. evaluating performance c. planning d. controlling profit and operations e. facilitating communication and coordinating activities 2. On January 1, Colver Company has 6,500 units of Product A on hand. During the year, the company plans to sell 15,000 units of Product A, and plans to have 5,000 units on hand at year-end. How many units of Product A must be produced during the year? a. 13,500 b. 16,500 c. 15,000 d. 20,000 3. Douglas Company plans to sell 24,00% units of Product A during July and 30,000 units during August. Sales of Product A during June were 25,000 units. Past experience has shown that end-of-month inventory must equal 3,000 units plus 30% of the next month's sales. On June 30 this requirement was met. Based on these data, how many units of Product A must be produced during the month of July? a. 28,800 b. 22,200 c. 24,000 d. 25,800