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MJ Department Store expects to generate the following sales figures for the next three months:

MJ Department Store expects to generate the following sales figures for the next three months:
July August September
Expected sales $480,000 $560,000 $600,000
MJ's gross profit rate is 45% of sales dollars. At the end of each month, MJ wants a merchandise inventory balance equal to 30% of the following month's expected sales, stated at cost. What dollar amount of merchandise inventory should MJ plan to purchase in August?

MJ Department Store expects to generate the following sales figures for
the next three months:
July August September
Expected sales $480,000 $560,000 $600,000
MJ’s gross profit rate is 45% of sales dollars. At the end of each
month, MJ wants a merchandise inventory balance equal to 30% of the
following month’s expected sales, stated at cost. What dollar amount
of merchandise inventory should MJ plan to purchase in August?

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