Kamath-Meier Corporation's CFO Uses This Equation,which Was Developed by Regressing

Multiple Choice

Kamath-Meier Corporation's CFO uses this equation,which was developed by regressing inventories on sales over the past 5 years,to forecast inventory requirements: Inventories = $22.0 + 0.125(Sales) .The company expects sales of $275.0 million during the current year,and it expects sales to grow by 30% next year.What is the inventory forecast for next year? All dollars are in millions.

A) $59.4
B) $60.0
C) $54.7
D) $66.7
E) $82.0