Question
GAAP Publishing Co. is a wholesaler that sells accounting textbooks to colleges and universities. The company is preparing its budget for the fourth quarter of
GAAP Publishing Co. is a wholesaler that sells accounting textbooks to colleges and universities. The company is preparing its budget for the fourth quarter of the year, i.e. October 1st-December 31st, and has collected the following information to assist in its budget preparation:
Month | Units | Revenues |
October | 2,300 | $41,400 |
November | 900 | $16,200 |
December | 4,200 | $75,600 |
January | 5,800 | $104,400 |
GAAP Publishing likes to maintain month-end textbook inventory equal to 25% of the following months sales goal. GAAP had 575 textbooks in stock as of September 30th. How many textbooks will the company anticipate purchasing during the fourth quarter?
7,400
8,275
8,850
6,825
I solved it but got a different choice when it's supposed to be 8,275. Please explain the process of getting that answer.
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