Suppose Pad at s lls 1.400 hardcover books per day at an average proe of S80 Ass

Question

Suppose Pad at s lls 1.400 hardcover books per day at an average proe of S80 Assume that Packrats cost for the books se5% ofthe se ing pro t charges retail customers Packrat has no beginning inventory, but it wants to have a three-day supply of ending inventory. Assume that selling and administrative expenses are $2,800 per day Determine Packrat's budgeted purchases for the next (seven-day) week O A $509,600 OB. S201 ,200 O C. $1,120,000 O D. $728,000 Click to select your answer Pvacy Te vertising Business

Explanation / Answer

The correct answer is option A I.e, $ 509,600 because it is for a week stock which is arrived as follows:-(7×1400)×52.I.e, 7 days of the week , 1400 units per day and 52 will be cost per unit(80$×65%).

Hence , the answer is justified.

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