A department store has budgeted sales of 12,000 men's coats in September.Management wants to have 6,000 coats in inventory at the end of the month to prepare for the winter season.Beginning inventory for September is expected to be 4,000 coats.What is the dollar amount of the purchase of suits if each coat has a cost of $75?

Question

Quizplus · Accepted Answer

To meet the sales and ending inventory goals, the store needs to have a total of 12,000 (sales) + 6,000 (ending inventory) = 18,000 coats. Subtracting the beginning inventory of 4,000 coats, the store needs to purchase 14,000 coats. At a cost of $75 each, the total purchase amount is 14,000 coats * $75 = $1,050,000.

A Department Store Has Budgeted Sales of 12,000 Men's Coats