Question

ratchet manufacturing's august sales budget calls for sales of 5,000 units. each month's unit sales are expected to grow by 4%. the product selling price is $20 per unit. the expected total sales dollars for september's sales budget are:

Answer 1

To calculate the expected total sales dollars for September's sales budget, we need to consider the growth in unit sales and the selling price.

Starting with the August sales budget of 5,000 units, we can calculate the expected unit sales for September by applying a growth rate of 4%.

First, we need to calculate the growth in unit sales:

Growth in unit sales = 4% of 5,000 units

= 0.04 * 5,000 units

= 200 units

So, the expected unit sales for September would be 5,000 units + 200 units = 5,200 units.

Next, we can determine the expected total sales dollars by multiplying the expected unit sales by the selling price per unit:

Expected total sales dollars = Expected unit sales * Selling price per unit

= 5,200 units * $20 per unit

= $104,000

Therefore, the expected total sales dollars for September's sales budget would be $104,000.