The Constantine Corporation purchases robes for $12 per unit and then sells them for $25 per unit. The company estimated the following sales for the first four months of the current year: January 8,000 units, February 12,000 units, March 9,000 units and April 7,000 units. The company has rent expense of $5,600 and personnel salaries of $32,000 each month as well as variable advertising costs of $3 per unit based on monthly sales. Ending inventory at December 31st is 2,000 units and for each month after that is expected to be 10% of the next month's sales. "What total dollar amount of purchases is projected for March?
The Constantine Corporation purchases robes for $12 per unit and then sells them for $25 per unit. The company estimated the following sales for the first four months of the current year: January 8,000 units, February 12,000 units, March 9,000 units and April 7,000 units. The company has rent expense of $5,600 and personnel salaries of $32,000 each month as well as variable advertising costs of $3 per unit based on monthly sales. Ending inventory at December 31st is 2,000 units and for each month after that is expected to be 10% of the next month's sales. "What total dollar amount of purchases is projected for March?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2CE
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Question
![The Constantine Corporation purchases robes for $12 per unit and then sells them for $25 per unit. The company estimated the
following sales for the first four months of the current year: January 8,000 units, February 12,000 units, March 9,000 units and April
7,000 units.
The company has rent expense of $5,600 and personnel salaries of $32,000 each month as well as variable advertising costs of $3
per unit based on monthly sales.
Ending inventory at December 31st is 2.000 units and for each month after that is expected to be 10% of the next month's sales.
What total dollar amount of purchases is projected for March?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05e08579-93c4-47f6-b9aa-549d9b743c2c%2F4e154889-7363-4348-9e0d-fd0d79af4637%2Fl5mf8ar_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Constantine Corporation purchases robes for $12 per unit and then sells them for $25 per unit. The company estimated the
following sales for the first four months of the current year: January 8,000 units, February 12,000 units, March 9,000 units and April
7,000 units.
The company has rent expense of $5,600 and personnel salaries of $32,000 each month as well as variable advertising costs of $3
per unit based on monthly sales.
Ending inventory at December 31st is 2.000 units and for each month after that is expected to be 10% of the next month's sales.
What total dollar amount of purchases is projected for March?
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