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Ecology Co Ending Inventory for Each Month Should Be 20% of the the Following

Question 9

Multiple Choice

Ecology Co.sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the current year:  Jan.  Feb.  March  April  Sales in units 1,7001,9002,1001,600\begin{array}{lclrl}& \text { Jan. } & \text { Feb. } & \text { March } & \text { April } \\\text { Sales in units } &1,700 & 1,900 & 2,100 & 1,600\end{array} Ending inventory for each month should be 20% of the next month's sales, and the December 31 inventory is consistent with that policy.How many units should be purchased in February?


A) 1,860
B) 1,900
C) 1,940
D) 1,980
E) 2,320

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