Question

In its static budget, Hat Trick Manufacturing budgeted sales of 75,000 units at a price of $85 per unit. Its actual sales revenue was $9,000,000 for the budgeted period, and it sold 95,000 units. What would be the static budget sales revenue?

A : $9,025,000
B : $9,215,000
C : $6,375,000
D : $1,900,000

Answer 1

C : $6,375,000

Step-by-step explanation:

The static budget revenue is the revenue resulting of the predicted sales volume selling at the predicted price per unit.

In this case, Hat Trick Manufacturing expected to sell 75,000 units at a price of $85 per unit.

The company's static budget is:

`SB = 75,000*\$85\\SB=\$6,375,000`

The answer is C : $6,375,000.