Question

Suppose StoreRUs sells 1,600 hardcover books per day at an average price of $ 70. Assume that StoreRUs's cost for the books is 55​% of the selling price it charges retail customers. StoreRUs has no beginning​ inventory, but it wants to have a​ three-day supply of ending inventory. Assume that selling and administrative expenses are $ 4 comma 800 per day. Compute StoreRUs's budgeted sales for the next​ (seven-day) week.

Answer 1

$784,000

Step-by-step explanation:

For calculating budgeted sales for the upcoming week can be calculated as under:

Sale Budget (Units) = Hardcover Books sales units per day * 7 days

= 1,600 books per day * 7 days

= 11,200 Units

Now the sales units would be converted into Dollars:

Sales Budget ($) = 11,200 Units * $70 days = $784,000