The Pizza Merchandise Company Has Budgeted $40,000 in Sales for the Month

The Pizza Merchandise Company has budgeted $40,000 in sales for the month of December. The company's cost of goods sold is 30% of sales. If the company has budgeted to purchase $18,000 in merchandise during December, then the budgeted change in inventory levels over the month of December is:

A) $6,000 increase.
B) $10,000 decrease.
C) $22,000 decrease.
D) $15,000 increase.

Correct Answer:

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