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Anne Miles Owns a Small Business That Produces Gourmet Candies

Question 112

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Anne Miles owns a small business that produces gourmet candies that are popular with local households during the holiday party season­from Halloween through New Years. Although it is only mid­September, Anne's storage pantries are beginning to fill with boxes of her special candies. Given the nature of her business, the most likely explanation for Anne's large inventory of sweets is that she:


A) expects an unexpected surge in demand for her candies in the month of September and she doesn't want to lose sales by running out of stock.
B) made a poor sales forecast and is now stuck with excess inventory.
C) builds up inventory during slower periods so that she'll have plenty of candy to sell during the peak season without having to invest in additional production capacity.
D) spent a lot of money on her storage facilities and wants to make sure they are fully utilized.

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