Waterloo, ltd. manufactures a component used in aircraft navigation systems. demand has been strong and the executive staff at waterloo is planning for next year. yesterday, you were called into a budgeting meeting where production plans are being reviewed. you learn that the inventory policy at waterloo is to hold one and one-half months’ worth of sales (to avoid issues with transportation disruptions). the sales budget for next year is 662,000 units, spread evenly over the year. because of an unexpected increase in demand, inventory at the end of this year is expected to be only 32,000 units. the capacity of the plant is 702,000 units annually.1. what production level next year will be required to meet the targets? (do not round intermediate calculations.)

According to the law of demand, there is an inverse relationship between price and quantity demanded. that is, the demand curve for goods and services slopes downward. why?

Depreciation on the company's equipment for 2017 is computed to be $18,000.the prepaid insurance account had a $6,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains. the office supplies account had a $700 debit balance on december 31, 2016; and $3,480 of office supplies were purchased during the year. the december 31, 2017, physical count showed $300 of supplies available. two-thirds of the work related to $15,000 of cash received in advance was performed this period. the prepaid insurance account had a $6,800 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of insurance policies showed that $5,800 of coverage had expired. wage expenses of $3,200 have been incurred but are not paid as of december 31, 2017.

Margaret company reported the following information for the current year: net sales $3,000,000 purchases $1,957,000 beginning inventory $245,000 ending inventory $115,000 cost of goods sold 65% of sales industry averages available are: inventory turnover 5.29 gross profit percentage 28% how do the inventory turnover and gross profit percentage for margaret company compare to the industry averages for the same ratios? (round inventory turnover to two decimal places. round gross profit percentage to the nearest percent.)