Hannon Retailing Company prices its products by adding 30% to its cost. Hannon anticipates sales of $715,000
Question:
Hannon Retailing Company prices its products by adding 30% to its cost. Hannon anticipates sales of $715,000 in July, $728,000 in August, and $624,000 in September. Hannon’s policy is to have on hand enough inventory at the end of the month to cover 25% of the next month’s sales. What will be the cost of the inventory that Hannon should budget for purchase in August?
a. $509,600
b. $540,000
c. $560,000
d. $680,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton
Question Posted: