Question

A company expects the following sales for the coming year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units 50,000 40,000 70,000 90,000 Average selling price $6 $6 $6 $8 Budgeted sales revenue for the year is:

a.$1,050,000.
b.It is impossible to tell from this information.
c.$1,155,000.
d.$1,680,000.
e.$1,260,000.

Answer 1

Budgeted sales revenue for the year is: d.$1,680,000.

Step-by-step explanation:

Budgeted sales revenue for the year = Budgeted sales revenue for 1st Quarter + Budgeted sales revenue for 2nd Quarter + Budgeted sales revenue for 3rd Quarter + Budgeted sales revenue for 4th Quarter

Budgeted sales revenue for 1st Quarter = 50,000 x $6 = $300,000

Budgeted sales revenue for 2nd Quarter = 40,000 x $6 = $240,000

Budgeted sales revenue for 3rd Quarter = 70,000 x $6 = $420,000

Budgeted sales revenue for 4th Quarter = 90,000 x $8 = $720,000

Budgeted sales revenue for the year = $300,000 + $240,000 + $420,000 + $720,000 = $1,680,000