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28 January, 22:29

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

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  1. 28 January, 22:31
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    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
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