Question

Production and sales estimates for june are as follows: estimated inventory (units), june 1 8,000 desired inventory (units), june 30 9,000 expected sales volume (units): area x 4,000 area y 10,000 area z 6,000 unit sales price $25 the budgeted total sales for june is a _________.

1) $525,000
2) $225,000
3) $200,000
4) $500,000

Answer 1

The budgeted total sales for June is calculated by adding the expected sales volume for all areas and multiplying by the unit sales price. The total sales volume is 20,000 units, and with a unit price of $25, the budgeted total sales amount to $500,000.

Step-by-step explanation:

The student is asking for assistance to calculate the budgeted total sales for June in a business scenario, which can be determined by multiplying the expected sales volume with the unit sales price. To find the budgeted total sales for June, we need to add up the expected sales volume for areas X, Y, and Z, which are 4,000, 10,000, and 6,000 units respectively. Multiplying this total volume by the unit sales price of $25 gives us the total sales for the month.

The calculation is as follows:
Total Expected Sales Volume = 4,000 (Area X) + 10,000 (Area Y) + 6,000 (Area Z) = 20,000 units
Unit Sales Price = $25
Budgeted Total Sales = Total Expected Sales Volume × Unit Sales Price = 20,000 units × $25 = $500,000

Therefore, the budgeted total sales for June is $500,000, which corresponds to option 4.