Caravan Corporation Has the Following Information The Cost of Goods Sold Percentage Is 70% and the

question 56

Multiple Choice

Caravan Corporation has the following information: $\begin{array}{lr}\text { Month } & \text { Budgeted Sales } \\{may } & \$ 46,000 \\\text { June } & 50,000 \\\text { July } & 52,000 \\\text { August } & 48,000\end{array}$ The cost of goods sold percentage is 70% and the desired inventory level is 25% of next month's sales._____ was the beginning inventory for May.

• A)$8,050
• B)$4,025
• C)$12,075
• D)None of these answers is correct

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Definitions:

Consumer Ethnocentrism

The belief held by some consumers that purchasing foreign-made products is wrong or harmful to the local economy.

Major External Factors

Key influences originating outside of an organization that can significantly impact its performance and strategy, such as economic, social, technological, and political conditions.

Direct Competition

Two or more businesses offering products or services that directly compete against each other.

Currency Fluctuation

Refers to the variations in the value of one currency relative to another, which can impact international trade and investments.