Question

Suppose Merrimack sells 2,000 hardcover books per day at an average price of $ 60. Assume that Merrimack's cost for the books is 70​% of the selling price it charges retail customers. Merrimack has no beginning​ inventory, but it wants to have a​ three-day supply of ending inventory. Assume that selling and administrative expenses are $ 4,000 per day. Compute Merrimack's budgeted sales for the next​ (seven-day) week. A. $ 840,000 B. $ 1,680,000 C. $ 868,000 D. $ 588,000

Answer 1

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Suppose Merrimack sells 2,000 hardcover books per day at an average price of $ 60. Assume that Merrimack's cost for the books is 70​% of the selling price it charges retail customers. Merrimack has no beginning​ inventory, but it wants to have a​ three-day supply of ending inventory.

Sales budget= 2,000*7*60= 840,000