Mallcentral sells 1,000,000 hardcover books a day at an average price of $30. Assume that Mallcentral's purchase price for the books is 75% of the selling price it charges retail customers. Mallcentral has no beginning inventory, but it wants to have a three-day supply of ending inventory. Assume that operating expenses are $1,000,000 per day.
- Compute Mallcentral's budgeted sales for the next week.
- Determine Mallcentral's budgeted purchases for the next week
- What is Mallcentral's budgeted contribution margin for a week?