Question - Sander Enterprises prepared the following sales budget:
March - $8,000
April - $13,000
May - $12,000
June - $14,000
The expected gross profit rate is 40% and the inventory at the end of FEbruary was $10,000. Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold.
What is the total purchases budgeted for April?
A) $7,440
B) $7,920
C) $7,680
D) $9,360