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At January 1 2016 Deer Corp

Question 162

Multiple Choice

At January 1 2016 Deer Corp. has beginning inventory of 2000 surfboards. Deer estimates it will sell 10000 units during the first quarter of 2016 with a 12% increase in sales each quarter. Deer's policy is to maintain an ending inventory equal to 25% of the next quarter's sales. Each surfboard costs $100 and is sold for $150. How much is budgeted sales revenue for the third quarter of 2016?


A) $450000
B) $1950000
C) $1881600
D) $12544

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