Question

Health Resources expects to sell 480 units of Product A and 440 units of Product B each day at an average price of $19 for Product A and $32 for Product B. The expected cost for Product A is 40% of its selling price and the expected cost for Product B is 62% of its selling price. Health Resources has no beginning inventory, but it wants to have a six-day supply of ending inventory for each product. Compute the company's budgeted sales for the next (seven-day) week. (Round the answer to the nearest dollar.)

Answer 1

Instructions are listed below

Step-by-step explanation:

Giving the following information:

Health Resources expects to sell:

480 units of Product A

440 units of Product B

Selling price:

Product A= $19

Product B= $32

Cost:

Product A is 40% of its selling price= $7.6

Product B is 62% of its selling price= $19.84

Sales:

Product A= 480*7 days* 19= $63,840

Product B= 440*7*32= $98,560