Pinto Company Has the Following Data The Average Markup on Products Is 40%, and the Inventory

question 95

Multiple Choice

Pinto Company has the following data: $\begin{array}{lc}\text { Month } & \text { Budgeted Sales } \\\text { January } & \$ 108,000 \\\text { February } & 132,000 \\\text { March } & 144,000 \\\text { April } & 120,000\end{array}$ The average markup on products is 40%, and the inventory at the end of December was $19,000.Desired inventory levels are 30% of next month's sales at cost._____ is the desired ending inventory for April.

• A)$25,920
• B)$17,280
• C)$43,200
• D)None of these answers is correct

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Definitions:

Equal Payments

Regular payment amounts made or received over a period, typically in the context of loans, leases, or annuities, where each payment is of the same value.

Compounded Semiannually

Compounded Semiannually refers to the process of applying interest to an initial amount of money (principal) twice a year, where the amount of interest is added to the principal at each compounding period.

Interest Rate

The percentage of a loan or savings amount that is charged as interest to the borrower or paid to the investor, typically expressed on an annual basis.

Annual Rate

The interest rate for a period of one year, often used for comparing the yields of financial products.