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6 September, 02:54

Ratchet Manufacturing's August sales budget calls for sales of 8,000 units. Each month's sales are expected to exceed the prior month's results by 5%. The product selling price is $25 per unit. The expected total sales dollars for September's sales budget are:

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  1. 6 September, 02:58
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    September sales in dollar 210,000

    Explanation:

    To get the total dollar sales for September first, we need to calculate how many units are expected.

    The previous month, is August and we expect sales to grow at 5%

    So we can calculate:

    August sales in units 8,000

    September = August + 5%

    September = 8,000 x 1.05 = 8,400 units

    Now, we multiply by the selling price with september sales. This will be our total revenue

    8,400 units x $25 each = $210,000
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