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7 February, 13:09

Parker Corp., which operates on a calendar year, expects to sell 6,000 units in October, and expects sales to increase 5% each month thereafter. Sales price is expected to stay constant at $16 per unit. What are budgeted revenues for the fourth quarter

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  1. 7 February, 14:53
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    Total Budgeted sales revenue = $302,640.

    Explanation:

    Parker Corp.

    Sales budget

    For the end of the fourth quarter

    October November December

    Sales volume 6,000 6300 6,615

    Sales per unit $16 $16 $16

    Budgeted sales revenue $96,000 $100,800 $105,840

    Total Budgeted sales revenue = $96,000 + $100,800 + $105,840 = $302,640.

    Calculation: Sales volume for November = 6,000 + (6,000 * 5%) = 6300.

    Sales volume for December = 6300 + (6300 * 5%) = 6,615.
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