[Mohdkkutty]

A retailer forecasts that sales in the first month of the year will be $600,000 and will then grow at 4% per month for the next three months. It prices its products by adding a mark-up of 20% to its purchase cost. The retailer always carries sufficient inventory to cover the next month’s forecast sales.
9. What is the forecast inventory (to the nearest dollar) at the end of the second month of the
year?
A) 540800, B)562432 C)648960 D)811200

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