Mustang Company Has the Following Data The Average Mark- Up on Products Is 40%, and the }

question 96

Multiple Choice

Mustang Company has the following data: $$\begin{array} { l l } \text { Month } & \text { Budgeted Sales } \\\text { January } & \$ 108,000 \\\text { February } & 132,000 \\\text { March } & 144,000 \\\text { April } & 120,000\end{array}$$ The average mark- up 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) $43,200
• B) $25,920
• C) $17,280
• D) None of these answers is correct.