Question

CatNap Company has two products: Kittyz and Katz. A March sales forecast projects 20,000 units of Kittyz and 15,000 units of Katz are going to be sold at prices of 15 and12, respectively. The desired ending inventory of Kittyz is 20. What is the total revenue from the sales of Kittyz and Katz?

1) 300,000
2) 330,000
3) 360,000
4) 390,000

Answer 1

The total revenue from the sales of Kittyz and Katz is $480,000.

Step-by-step explanation:

To calculate the total revenue, we multiply the number of units sold by their respective prices. For Kittyz, we have 20,000 units sold at a price of $15 each, so the total revenue from Kittyz is 20,000 * $15 = $300,000.

For Katz, we have 15,000 units sold at a price of $12 each, so the total revenue from Katz is 15,000 * $12 = $180,000. Adding these two amounts, the total revenue from the sales of Kittyz and Katz is $300,000 + $180,000 = $480,000.