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7. Kamath-Meier Corporations CFO uses this equation, which was developed by regressing inventories on sales over the past 5
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Answer #1

The inventory forecast for next year is computed as shown below:

Sales next year is computed as follows:

= $ 350 + 30%

= $ 455

So the inventory forecast will be

= $ 25 + 0.145 x $ 455

= $ 90.9 Approximately

So the correct answer is option e i.e. $ 90.9

Feel free to ask in case of any query relating to this question

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