Question

Budget Preparation Collins Company is preparing its master budget for April. Use the given estimates to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories A and B estimate sales of 10,000 and 12,000 units, respectively, and the unit selling price is $46

Answer 1

$1,012,000

Step-by-step explanation:

The calculation of total sales revenue is shown below:-

For computing the sales revenue first we need to compute the territories A and territories B

Territories A = 10,000 × $46

= $460,000

Territories B = 12,000 × $46

= $552,000

Sales revenue = Territories A + Territories B

= $460,000 + $552,000

= $1,012,000

So, for computing the sales revenue we simply added the territories A and territories B.