Compute Amazon.coms budgeted sales for the next (seven-day) week. Suppose Amazon.com sells one million hardcover books a

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Compute Amazon.com’s budgeted sales for the next (seven-day) week.

Suppose Amazon.com sells one million hardcover books a day at an average price of \($37\). Assume that Amazon.com’s purchase price for the books is 60% of the selling price it charges retail customers. Amazon.com has no beginning inventory, but it wants to have a three-day supply of ending inventory. Assume that operating expenses are \($2\) million per day.

a. \($273\) million

b. \($259\) million

c. \($481\) million

d. \($155\) million

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Financial And Managerial Accounting

ISBN: 9780135080191

2nd Edition

Authors: Charles T Horngren, Jr Walter T Harrison

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