FunToys prepares budgets to help manage the company. FunToys is budgeting for the fiscal year ended January 31, 2016. During the preceding year ended January 31, 2015, sales totaled $9,900 million and cost of goods sold was $6,900 million. At January 31, 2015, inventory was $1,800 million. During the upcoming 2016 year, suppose FunToys expects cost of goods sold to increase by 14%. The company budgets next year's ending inventory at $2,100 million.
Requirement
One of the most important decisions a manager makes is how much inventory to buy. How much inventory should FunToys purchase during the upcoming year to reach its budget?