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A Company's Gross Profit Rate Is 30% of Sales

Question 98

Multiple Choice

A company's gross profit rate is 30% of sales.Expected January sales are $78,000 and desired January 31st inventory is $7,500.Assuming the December 31st inventory is $6,200 what amount of purchases should this company budget for the month of January?


A) $53,300
B) $55,900
C) $24,700
D) $22,100
E) $79,300

Correct Answer:

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