Dave's Mirror Company Expects to Sell $1,000,000 Worth of Mirrors

Multiple Choice

Dave's Mirror Company expects to sell $1,000,000 worth of mirrors and to produce $1,250,000 worth of mirrors in the coming year. The company purchases $300,000 worth of new equipment during the year. Sales for the year turn out to be $900,000. Actual investment by Dave's Mirror Company equals ________ and planned investment equals ________.

A) $250,000; $150,000
B) $300,000; $200,000
C) $550,000; $450,000
D) $650,000; $550,000