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At January 1, 2014, Zella Company has beginning inventory of 2,000 DVD players. Zella estimates it will sell 10,000 units during the first quarter of

At January 1, 2014, Zella Company has beginning inventory of 2,000 DVD players. Zella estimates it will sell 10,000 units during the first quarter of 2014 with a 12% increase in sales each quarter. Zella's policy is to maintain an ending inventory equal to 25% of the next quarter's sales. Each DVD player costs $100 and is sold for $140. How much is budgeted sales revenue for the third quarter of 2014?

a. $420,000

b. $1,820,000

c. $12,544

d. $1,756,160

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