Question

Smith Jewelry Store sells 20 pieces of jewelry per day at an average price of $20 per piece. Assume Smith’s cost for the jewelry is 55% of the selling price it charges retail customers. There is no beginning inventory, but Smith wants to have a 7 day supply of ending inventory. Assume the selling and administrative expenses are $400 per day. What is Smith Jewelry Store’s budgeted sales for the month (30 days)?

Answer 1

$12,000

Step-by-step explanation:

Take 20 pieces $20 average price per piece 30 days

= $12,000 expected sales for the month