A retailer uses the percentage variation method in inventory level planning.If the store plans an average monthly stock of $400,000 and September sales are estimated at 20 percent more than average,the store's planned inventory level for September is ________.

Question

Quizplus · Accepted Answer

The planned inventory level for September is calculated by increasing the average monthly stock by 20%. Therefore, $400,000 + (20% of $400,000) = $400,000 + $80,000 = $480,000.

A Retailer Uses the Percentage Variation Method in Inventory Level