Reference no: EM133050627

Question - Sweet Sadie Company is a manufacturer of gourmet dog treats. It currently manufactures 3 different product lines. The manager of each product line is held responsible for generating revenue and controlling costs. The following information was compiled for the Sweet Potato Bliss product line for the prior? period: Good Morning Sunshine is a wholesaler of coffee makers. In the current? year, actual March sales revenue totaled? $200,000. April sales are expected to decrease? 10% below March sales. May sales are expected to increase? 10% above April sales. June sales are expected to increase? 5% above May sales. Prices are set to achieve a? 60% gross profit. The company wants to maintain an ending merchandise inventory equal to? 10% of the next? month's cost of sales. The ending inventory requirement was met at the end of March. Accounts Payable consist solely of inventory purchases. All invoices from the suppliers are dated as of the end of the month of purchase and carry payment terms 1/10, net 30. Assuming Good Morning Sunshine takes full advantage of purchase discounts offered, what are the company's expected cash disbursements in May to its supplier?

A. $78,015.96

B. $73,062.00

C. $72,720.00

D. $107,989.20

E. $71,992.80