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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 180 $1,620 February 170 1,530 March 190 1,710 April 200 1,800 May 220 1,980 June 210 1,890 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, 23 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 April May Unit sales Desired EI Total needed Less: BI Unit purchases 2. If vitamins are priced at cost plus 80 percent, what is the dollar cost of purchases for each month of your purchases budget? January February March April May
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