The Pizza Merchandise Company has budgeted $40,000 in sales for the month of December. The company's cost of goods sold is 30% of sales. If the company has budgeted to purchase $18,000 in merchandise during December, then the budgeted change in inventory levels over the month of December is:

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The cost of goods sold is 30% of $40,000, which is $12,000. The company plans to purchase $18,000 in merchandise. The change in inventory is the difference between purchases and cost of goods sold: $18,000 - $12,000 = $6,000 increase.

The Pizza Merchandise Company Has Budgeted $40,000 in Sales for the Month