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What the cost of the inventory that Hannon should budget

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Problem - Hannon Retailing Company prices its products by adding 30% to its cost. Hannon anticipates sales of $715,000 in July, $728,000 in August, and $624,000 in September. Hannon's policy is to have on hand enough inventory at the end of the month to cover 25% of the next month's sales. What will be the cost of the inventory that Hannon should budget for purchase in August?

a. $509,600

b. $540,000

c. $560,000

d. $680,000

Reference no: EM132763986

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