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Question - Fiesta Party Stores sells merchandise for all party occasions. Fiesta is considering increasing the price of its party dresses, which sell well. Its current inventory of dresses is made up of 3,500 dresses at a standard cost of $30 per dress. It expects to raise prices by 8% because of cost increases. The price increase is expected to lead to a 5% drop in volume of dresses sold. Sales were projected at $1,875,000 based on a unit price of $75 before the price increase. If Fiesta does not adjust its purchases and wants to absorb the drop in volume in inventory, how many dresses will it have on hand at the end of the next month?
A. 2,250
B. 3,500
C. 1,250
D. 4,750
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