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18 May, 11:27

Production and sales estimates for June are as follows:

Estimated inventory (units), June 1 8,000

Desired inventory (units), June 30 9,000

Expected sales volume (units):

Area X 4,000

Area Y 10,000

Area Z 6,000

Unit sales price $25

The budgeted total sales for June is

a.$500,000

b.$225,000

c.$525,000

d.$200,000

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Answers (1)
  1. 18 May, 12:40
    0
    The correct answer is A.

    Explanation:

    Giving the following information:

    Expected sales volume (units):

    Area X 4,000

    Area Y 10,000

    Area Z 6,000

    Unit sales price $25

    The total budgeted sales are the result of multiplying the sales in units for the selling price:

    Total sales = selling price * number of units

    Total sales = (4,000 + 10,000 + 6,000) * 25 = $500,000
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