Exhibit $9-1$

Sporting Inc. is a distributor which sells one product for $$100$ per unit. Sporting pays $$60$ to buy the product. In addition, fixed costs total $$60,000$ per month. Sporting wishes to maintain an inventory at the end of each month equal to $30\%$ of the next month's projected sales. Purchases are paid in the month after purchase.

Sporting makes all sales on credit and collects $40\%$ in the month of sale and $60\%$ in the month after sale. Budgeted monthly sales in units for the first five months of $2021$ are as follows:

January

$10,000$ units

February

$15,000$ units

March

$18,000$ units

April

$20,000$ units

May

$16,000$ units

Refer to Exhibit $9-1.$ What dollar amount of merchandise inventory will be purchased in April?

Group of answer choices

$$1,848,000$

None of the answer choices is correct.

$$1,272,000$

$$1,128,000$

$$552,000$