Miller Company has the following data:
The gross profit rate is 40 percent, and the inventory at the end of December was $72,000. Desired inventory levels are 30 percent of next month's sales.
-The desired ending inventory for April is

Question

Miller Company has the following data:
  The gross profit rate is 40 percent, and the inventory at the end of December was $72,000. Desired inventory levels are 30 percent of next month's sales.
-The desired ending inventory for April is

Quizplus · Accepted Answer

The desired ending inventory cannot be determined without additional information such as the beginning inventory, sales forecasts, or production plans.

Miller Company Has the Following Data