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Question - The Guitar Company has been manufacturing guitars for the past 15 years. The business is located in Toronto, Ontario. For the Guitar Company, as at January 1, 2022, the beginning inventory is 500 guitars. The company estimates it will sell 1,000 guitars during the first quarter of 2022 with a 10% increase in sales each quarter. The company's policy is to maintain an ending inventory equal to 20% of the next quarter's sales. Each guitar costs $200 to make and is sold for $300.
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