Skeeter-Beater, Inc. buys all-natural mosquito repellent for $4 per
unit and then sells it for $12 per unit. The company estimated the following sales for the first four months of the current year: January 8,000 units, February 12,000 units, March 9,000 units and April 7,000 units.
Ending inventory at December 31st is 2,000 units and for each month after that is expected to be 10% of the next month’s sales.
What dollar amount of purchases should the company budget for February?
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The post Skeeter-Beater, Inc. buys all-natural mosquito repellent for $4 per unit and then sells it for $12 per unit. The company estimated the following sales for the first four months of the current year: January 8,000 units, February 12,000 units, March 9,000 units and April 7,000 units. Ending inventory at December 31st is 2,000 units and for each month after that is expected to be 10% of the next month’s sales. What dollar amount of purchases should the company budget for February? appeared first on Superb Professors.
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