Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following sales volumes: Daytripper: 4,000 backpacks in July, 4,400 backpacks in August Excursion: 2,400 backpacks in July, 1,800 backpacks in August Teton's policy is to maintain ending inventories at 5% of what is expected for the next month. What is the budgeted level of production in July for both styles? Select one: a. 4,420 Daytripper backpacks and 1,770 Excursion backpacks b. 3,980 Daytripper backpacks and 2,430 Excursion backpacks c. 4,000 Daytripper backpacks and 2,400 Excursion backpacks ○ d. None of these options are correct. e. 4,020 Daytripper backpacks and 2,370 Excursion backpacks

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following sales volumes:
Daytripper: 4,000 backpacks in July, 4,400 backpacks in August
Excursion: 2,400 backpacks in July, 1,800 backpacks in August
Teton's policy is to maintain ending inventories at 5% of what is expected for the next month.
What is the budgeted level of production in July for both styles?
Select one:
a. 4,420 Daytripper backpacks and 1,770 Excursion backpacks
b. 3,980 Daytripper backpacks and 2,430 Excursion backpacks
c. 4,000 Daytripper backpacks and 2,400 Excursion backpacks
○ d. None of these options are correct.
e. 4,020 Daytripper backpacks and 2,370 Excursion backpacks
Transcribed Image Text:Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following sales volumes: Daytripper: 4,000 backpacks in July, 4,400 backpacks in August Excursion: 2,400 backpacks in July, 1,800 backpacks in August Teton's policy is to maintain ending inventories at 5% of what is expected for the next month. What is the budgeted level of production in July for both styles? Select one: a. 4,420 Daytripper backpacks and 1,770 Excursion backpacks b. 3,980 Daytripper backpacks and 2,430 Excursion backpacks c. 4,000 Daytripper backpacks and 2,400 Excursion backpacks ○ d. None of these options are correct. e. 4,020 Daytripper backpacks and 2,370 Excursion backpacks
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