BW Department Store expects to generate the following sales for the next three months: JulyAugustSeptemberExpected sales$490,000$540,000$580,000BW's cost of goods sold is 60% of sales dollars. At the end of each month, BW wants a merchandise inventory balance equal to 25% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should BW plan to purchase in August?

A. $314,600
B. $352,800
C. $330,000
D. $327,800


Answer: C

Business

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