Use the following information to answer questions
Innovative Inc. budgets 250,000 pair of flip flops sales in January. Desired ending inventory for each month is 5% of the following month's budgeted sales. Assume budgeted unit sales increases by 15% every month and that all units placed into production are completed during the month.
-What is the budgeted ending inventory of flip flops in March (round to the nearest whole pair) ?
A) 12,500 pair
B) 14,375 pair
C) 16,531 pair
D) 19,011 pair
E) 330,625 pair
Correct Answer:
Verified
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