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. Hannons policy is to have on

hand enough inventory at the end of the month to cover 25% of the next months 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