Leaf Industries is preparing its master budget for 2013. Relevant data pertaining to its sales budget are as follows:Sales for the year are expected to total 8,000,000 units. Quarterly sales are 25%, 30%, 15%, and 30%, respectively. The sales price is expected to be $2.00 per unit for the first quarter and then be increased to $2.20 per unit in the second quarter. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total for YrUnit Sales 8,000,000Unit Selling Price Total Sales

Total sales revenue is $17,200,000

Average selling price is $2.15

Explanation:

Q1 Q2 Q3 Q4 Total

sales (8,000,000*25%) 2,000,000 2,000,000

sales (8,000,000*30%) 2,400,000 2,400,000

sales (8,000,000*15%) 1,200,000 1,200,000

sales (8,000,000*30%) 2,400,000 2,400,000

sales price $2 $2.20 $2.20 $2.20

Revenue (price*qty) $4,000,000 $5,280,000 $2,640,000 $5280,000

Total sales = ($4,000,000 + $5,280,000 + $2,640,000 + $5280,000) = $17,200,000

Average sales price=total revenue/total volume

total revenue of $17,200,000

total volume 8,000,000

average sales price=$17,200,000/8,000,000=$2.15