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A business has compiled the following information for the year ended 31 October 2002:
$
Opening inventory                386,200
Purchases                            989,000
Closing inventory                  422,700
The gross profit as a percentage of sales is always 40%
Based on these figures, what is the sales revenue for the year?
A $1,333,500
B $1,587,500
C $2,381,250
D The sales revenue figure cannot be calculated from this information

B $952,500 × 100/60 = $1,587,500