Ask Question
4 July, 15:28

At the beginning of the year, Goldenrod had beginning inventory of 2,000 scooters. Goldenrod estimates it will sell 5,000 units during the first quarter of the current year, with a 10% increase in sales each quarter. It is Goldenrod's policy to maintain an ending inventory equal to 20% of the next quarter's budgeted sales. Each scooter costs $100 to produce and sold for $150. How much is the budgeted sales revenue for the third quarter of the current year?

+4
Answers (1)
  1. 4 July, 15:40
    0
    The budgeted sales revenue for the third quarter of the current year is $907,500

    Explanation:

    For computing the budgeted sales revenue for the third quarter, first, we have to compute the sales for the first and second quarter which equals to:

    First quarter sales revenue = Sales units * sale price

    = 5,000 * $150

    = $750,000

    Second quarter sales revenue = Sales units * sale price

    = 5,500 * $150

    = $825,000

    For second quarter sales units, the units is increased by 10% which means

    = 5,000 + 5,000 * 10%

    = 5,000 + 500

    = 5,500

    Third quarter sales revenue = Sales units * sale price

    = 6,050 * $150

    = $907,500

    For third quarter sales units, the units is increased by 10% which means

    = 5,500 + 5,500 * 10%

    = 5,500 + 550

    = 6,050 units

    Hence, the budgeted sales revenue for the third quarter of the current year is $907,500
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “At the beginning of the year, Goldenrod had beginning inventory of 2,000 scooters. Goldenrod estimates it will sell 5,000 units during the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers