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

Question 1

Multiple Choice

The Willsey Merchandise Company has budgeted $40,000 in sales for the month o? 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:


A) $6,000 increase.
B) $22,000 increase.
C) $10,000 decrease.
D) $15,000 decrease.

Correct Answer:

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