Use the Information Below to Answer the Following Questions

question 18

Multiple Choice

Use the information below to answer the following questions.
Saddle Company, a leather manufacturer, has a sales budget of $500,000 for February. The cost of sales is estimated to be 35% of sales. All materials purchased by Saddle Company are paid for in the month following the purchase. The beginning inventory for February is $10,000, and an ending inventory of $11,000 is desired. The trade payables balance at the beginning of February is $88,000.
-Before using a particular sales forecast, the forecast should be reviewed with respect to:

• A) sales projections based on all product lines.
• B) sales projections based on economic forecasts.
• C) sales forecasts by marketing department.
• D) all of the above.