What is Amazon.coms budgeted operating income for a (seven-day) week? Suppose Amazon.com sells one million hardcover books

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What is Amazon.com’s budgeted operating income for a (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. \($85\) million

b. \($31\) million

c. \($90\) million

d. \($191\) million

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Related Book For  book-img-for-question

Financial And Managerial Accounting

ISBN: 9780135080191

2nd Edition

Authors: Charles T Horngren, Jr Walter T Harrison

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