Pinto Company Has the Following Data The Average Markup on Products Is 40%, and the Inventory

Multiple Choice

Pinto Company has the following data: $\begin{array}{lc}\text { Month } & \text { Budgeted Sales } \\\text { January } & \$ 108,000 \\\text { February } & 132,000 \\\text { March } & 144,000 \\\text { April } & 120,000\end{array}$ The average markup on products is 40%, and the inventory at the end of December was $19,000.Desired inventory levels are 30% of next month's sales at cost._____ is the desired ending inventory for April.

A) $25,920
B) $17,280
C) $43,200
D) None of these answers is correct