1. Sales for January are budgeted at 50,000 units, and the company expects sales to increase 4% each month. How many units will need to be purchased in February if the company's policy is to keep ending inventory each month at 10,000 units?
52,000 units
54,000 units
62,000 units
None of these answers is correct.
2. The costs and revenues associated with two alternatives are listed below:

Alternative 2 because it has a higher profit
Alternative 2 because it has the same product- & facility-level costs.
Alternative 1 because it has fewer unit-level costs
Alternative 1 because it has a higher profit
3. For purposes of decision making, avoidable costs are costs that: were incurred in the past will not be incurred in the future, regardless of the alternative chosen. Differ between alternatives.
None of these
4. Which of the following is not a possible alternate term for costs that can be eliminated by taking a specified course of action?
Avoidable costs
Opportunity costs
Relevant costs
Differential costs

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Alternative 2 Altenative 1 Projected revenue $125,000 30,000 25,000 15,000 10,000 $100,000 20,000 Unit-level costs Batch-level costs Product-level costs Facility-level costs 20,000 15,000 10,000