If the planned sales for the month are 70,000, the merchandise budget calls for a planned stock-to-sales ratio of 2.3, and the financial leverage is 1.1, then the planned BOM inventory should be:
a. 77,000
b. 84,000
c. 161,000
d. 177,100
e. 194,100
Question 2
Your boss indicates that the store's stock/sales ratio is 5:1 . This means that _____ should be invested in inventory for every 1 of forecasted sales.
a. .20 (at retail price)
b. 5 (at cost price)
c. 5 (at retail price)
d. .20 (at cost price)
e. 50 (at cost price)
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