Use the Following Information for Questions
Sloan Company, a Wholesaler

question 41

Multiple Choice

Use the following information for questions
Sloan Company, a wholesaler, budgeted the following sales for the indicated months: $\begin{array}{lrrr}&\text { June}&\text { July }&\text {Auqust }\\\text { Sales on account } & \$ 1,800,000 & \$ 1,840,000 & \$ 1,900,000 \\\text { Cash sales } & 180,000 & 200,000 & 260,000\\\text { Total sales } & \$ 1,980,000 & \$ 2,040,000 &\$ 2,160,000\\\end{array}$ All merchandise is marked up to sell at its invoice cost plus 20%.Merchandise inventories at the beginning of each month are at 30% of that month's projected cost of goods sold.
-Merchandise purchases for July are anticipated to be

• A)$1,632,000.
• B)$2,076,000.
• C)$1,700,000.
• D)$1,730,000.

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Definitions:

Pay to Performance

A compensation strategy where an employee's pay is based directly on their performance outcomes or achievements.

R&D

Stands for research and development; the activities companies undertake to innovate and introduce new products or services.

Functional Division

A structure within an organization where departments are divided based on specific functions or roles, such as marketing or finance.

Economies of Scale

Economic gains that organizations derive from their magnitude of operations, with the expense per produced unit usually diminishing as the operational scale grows.