Question

Scare-2-B-U (S2BU) specializes in costumes for all occasions. The average price of each of its costumes is $240. For each occasion, S2BU receives a 20 percent deposit two months before the occasion, 50 percent the month before, and the remainder on the day the costume is delivered. Based on information at hand, managers at S2BU expect to make costumes for the following number of occasions during the coming months. April 75 May 45 June 30 July 60 August 75 September 165 Required: a. What are the expected revenues for S2BU for each month, April through September

Answer 1

Results are below.

Step-by-step explanation:

Giving the following information:

Selling price= $240

Sales in units:

April 75

May 45

June 30

July 60

August 75

September 165

The sales revenue is calculated using the following formula:

Sales revenue= number of units sold * selling price per unit

Sales revenue:

April= 75*240= $18,000

May= 45*240= $10,800

June= 30*240= $7,200

July= 60*240= $14,400

August= 75*240= $18,000

September= 165*240= $39,600