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Q. Fantastic Futons manufactures futons. The evaluated number of futon sales for the first three months of 2010 is as given:
January 40,000
February 50,000
March 60,000
Finished goods inventory at the end of 2009 was 12,000 units. On average, 25 % of the futons are produced during the month before they are sold, which usually accounts for the ending balance in finished goods inventory. The planned selling price is $150 per unit. What could be the sales budget for March?
Answer
a. $6,750,000
b. $8,000,000
c. $7,200,000
d. $9,000,000
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