Answer:
The correct answer is B.
Explanation:
Giving the following information:
Budgeted Sales (at retail):
January $300,000*0.60= 180,000
February $340,000*0.6= 204,000
March $400,000*0.6= 240,000
April $350,000
Cost of goods sold as a percentage of sales 60%
Desired ending inventory 75% of next month sales
April:
Purchase from March= (240,000*0.25) + (350,000*0.60*0.75)=60,000 + 157,500= $217,500