1. LILA Company developed the following sales forecasts and associated probabilities.

Sales ForecastProbability

P600, 00010%

P650, 00050%

P700, 00025%

P800, 00015%

The expected value of sales is

a. P650, 000 b. P670, 000 c. P680, 000 d. P687, 500

LILA Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. These tabletops are manufactured by LILA, but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured tabletop and attaches the four purchased table legs. It takes 20 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40% of next month's sales are in the finished goods inventory. LILA also purchases sufficient raw materials to ensure that raw materials inventory is 60% of the following month's scheduled production. LILA sales budget in units for the next quarter is as follows:

October 2, 300

November 2, 500

December 2, 100

LILA ending inventories in units for September 30, 2021 are:

Finished goods1, 900

Raw materials (legs) 4, 000

2. The number of tables to be purchased during November 2021 is

a. 1, 400 tables b. 1, 440 tables c. 2, 340 tables d. 2, 660 tables

3. Disregarding your response in preceding question, assume the required production for November and December is 1, 600 and 1, 800 units, respectively, and October 31, 2021, raw materials inventory is 4, 200 units. The number of table legs to be purchased in November is:

a. 6, 280 legs b. 6, 400 legs c. 6, 520 legs d. 9, 400 legs

4 . Assume that LILA Corporation will produce 1, 800 units in the month of December 2015. How many employees will be required for the Assembly Embassy? (Fractional employees are acceptable since employees can be hired on a part-time basis. (Assume a 40-hour week and a 4-week month.)

a. 3.75 employees b. 15 employees c. 33.75 employees d. 60 employees