Answer:
1,500 pairs of shoes
Explanation:
Present sales: 5,000 pairs of shoes
If Shoe Time anticipates its recent advertising campaign will increase monthly sales by 20%, future sales= 5,000*1,20= 6,000 pairs of shoes.
If Shoe Time wants to maintain an ending inventory equal to 25 percent of its next month's sales, the new budgeted monthly ending inventory balance will be:
6,000*0,25= 1,500 pairs of shoes
