Question

Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation:

a. The Marketing Department has projected sales of 10,000 beach umbrellas in July, 12,000 beach umbrellas in August, and 8,000 beach umbrellas in September.
Which of the following is a true statement about Milo Company's sales projection for the third quarter?
(A) Milo Company expects to sell 30,000 beach umbrellas in the third quarter.
(B) Milo Company expects to sell 15,000 beach umbrellas in the third quarter.
(C) Milo Company expects to sell 12,000 beach umbrellas in the third quarter.
(D) Milo Company expects to sell 10,000 beach umbrellas in the third quarter.

Answer 1

The correct statement about Milo Company's sales projection for the third quarter is that the company expects to sell 30,000 beach umbrellas.

Step-by-step explanation:

The Milo Company, which manufactures beach umbrellas, has made sales projections for the third quarter as part of their budget preparation process. The sales estimates are 10,000 units for July, 12,000 units for August, and 8,000 units for September. The correct statement regarding their sales projection for the third quarter would be:

• Milo Company expects to sell 30,000 beach umbrellas in the third quarter.

This is calculated by adding the monthly sales projections: 10,000 (for July) + 12,000 (for August) + 8,000 (for September) = 30,000 beach umbrellas in total.