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Last year Dallas Designs had $500,000 of sales, and it expect sales to increase by 20% during the coming year. Dallas' CFO uses a simple
Last year Dallas Designs had $500,000 of sales, and it expect sales to increase by 20% during the coming year. Dallas' CFO uses a simple linear regression to forecast the company's required inventory for a given level of projected sales, and based on the firm's recent history, this equation was developed: Inventories =$22,000+0.125 (Sales). Based on this equation and the forecasted sales, what is the required level of inventories for the coming year? $88,000 $91,000 $94,000 $97,000 $100,000
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