Argyle Company Forecasts Sales of $50 000 in January, $60

question 42

Multiple Choice

Argyle Company forecasts Sales of $50 000 in January, $60 000 in February, $70 000 in March, and $75 000 in April. The inventory balance at 1 January is $12 000. Cost of sales is budgeted at 40% of sales revenue. Argyle wishes to have inventory levels at the end of each month equal to 60% of the cost of sales for the following month, plus a "safety cushion" of $1 000. How much should be budgeted for inventory purchases in March?

• A)$21 000
• B)$22 100
• C)$23 400
• D)$29 200

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Definitions:

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Behaviour Genetics

The study of the role of genetic and environmental influences on behaviors.

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