Question
Budgeted sales of the East End Burger Joint for the rst quarter of the year are as follows: January . . . . . .
Budgeted sales of the East End Burger Joint for the rst quarter of the year are as follows: January . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,000 February . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 March . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,000 The cost of sales averages 40% of sales revenue and management desires ending inventories equal to 25% of the following months sales. Assuming the January 1 inventory is $5,000, the January purchases budget is
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