Suppose Mallcentral sells 1,000 hardcover books per day at an average price of $30. Assume that Mallcentral’s cost 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 selling and administrative expenses are $1,000 per day. Compute Mallcentral’s budgeted sales for the next (seven-day) week. a. $157,500 b. $217,000 c. $435,000 d. $210,000

Question

Suppose Mallcentral sells 1,000 hardcover books per day at an average price of $30. Assume that Mallcentral’s cost 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 selling and administrative expenses are $1,000 per day.

Compute Mallcentral’s budgeted sales for the next (seven-day) week.

a. $157,500

b. $217,000

c. $435,000

d. $210,000

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