Zin, Inc. is planning its cash needs for an upcoming period when 109,000 machine

Question

Zin, Inc. is planning its cash needs for an upcoming period when 109,000 machine hours are expected to be worked. Activity may drop as low as 102,000 hours if some overdue equipment maintenance procedures are performed; on the other hand, activity could jump to 118,000 hours if one of Zin's major competitors likely goes bankrupt. A flexible cash budget to determine cash needs would best be based on:

102,000 hours. 102,000 hours, 109,000 hours, and 118,000 hours. 109,000 hours. 118,000 hours. 102,000 hours and 118,000 hours.

Explanation / Answer

109,000 hours.

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