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:

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:

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


Answer: C


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