Page 3 7. Calculate: What would my company's desired ending inventory balance of finished goods be for Month 1 and the beginning inventory balance of finished goods for Month 2. Note: Management Require 10% of subsequent months projected sales units to be held as safety stock for the previous month Category Month 1 Month 2 Budgeted Units 80,00060,000 Month 4 Month 3 120,000 70,000 Ending Inventory of Finished Goods (Month 1) a. b. C. d. Beginning Inventory of Finished Goods (Month 2) 8,000 6,000 8,000 6,000 8,000 6,000 12,000 8,000 8. Which of the following would be an example of relevant costs for deciding to add or drop a product line? a. Salaries and Insurance b. Utilities and Depreciation c. Salaries and General Administration d. Advertising and Rent When deciding to accept or reject a special order, a company must analyze which of the below to determine their decision? 9. Opportunity Cost versus Incremental Costs Incremental Benefits versus Incremental Sales Volume Incremental Costs versus Incremental Benefits a. b. c