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

Question

Carolyn

Business

1 March, 16:35

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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Kianna Owens · Answer 1

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.