Use the Information Below to Answer the Following Question(s)

question 55

Multiple Choice

Use the information below to answer the following question(s) .
Peabody Enterprises prepared the following sales budget:

The expected gross profit rate is 40% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold.
-A tire store purchased $3,800 of tires in September. The store had $1,500 of tires on hand at the beginning of September, and expected to have $1,300 of tires at the end of September to cover part of anticipated October sales. What is the budgeted cost of goods sold for September?

• A) $4,000
• B) $3,600
• C) $6,600
• D) $5,300

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Definitions:

VoIP

Voice over Internet Protocol, a technology that allows for voice communications and multimedia sessions over Internet Protocol networks.

Digital Phone

A telephone that uses digital signals to transmit voice communications, as opposed to traditional analog telephones.

Wired Network

A type of network where devices are connected using cables, offering more stability and security compared to wireless connections.

Traditional Phone Network

The landline telephone system, also known as the public switched telephone network (PSTN), which uses copper wires to transmit voice communication.