The Willsey Merchandise Company Has Budgeted $40,000 in Sales for the Month

Multiple Choice

The Willsey Merchandise Company has budgeted $40,000 in sales for the month of December.The company's cost of goods sold is 30% of sales.If the company has budgeted to purchase $18,000 in merchandise during December,what is the budgeted change in inventory levels over the month of December?

A) $6,000 increase.
B) $10,000 decrease.
C) $15,000 increase.
D) $22,000 decrease.