Fun Toys prepares budgets to help manage the company. Fun Toys is budgeting for the fiscal year ended January 31, 2012. During the preceding year ended January 31, 2011, sales totaled $9,600 million and cost of goods sold was $6,700 million. At January 31, 2011, inventory was $1,700 million.
During the upcoming 2012 year, suppose Fun Toys expects cost of goods sold to increase by 10%. The company budgets next year’s inventory at $2,000 million.

Requirement
1. One of the most important decisions a manager makes is how much inventory to buy. How much inventory should Fun Toys purchase during the upcoming year to reach its budget?