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Purchases Budget Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins for the
Purchases Budget Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins for the first six months of the year is presented below. Unit Sales Dollar Sales January 130 $1,040 February 120 960 March 140 April 150 1,200 May 1,360 June 160 1,280 1,120 170 The owner of Tiger Drug believes that ending inventories should be sufficient to cover 10 percent of the next month's projected sales. On January 1, 25 bottles of vitamins were in inventory. Required: 1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as you can. Tiger Drug Store Merchandise Purchases Budget January February March 130 120 140 12 14 15 April May Unit sales 150 170 Desired EI 17 16 Total needed 142 > 134 155 167 186 Less: BI 25 12 14 15 17 Unit purchases 117 122 141 152 169 2. If vitamins are priced at cost plus 60 percent, what is the dollar cost of purchases for each month of your purchases budget? January February March LIIII April May
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