Question

Glacier Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Glacier anticipates the following sales volumes for the coming period:

Daytripper: 2,000 backpacks
Excursion: 1.200 backpacks
If total budgeted revenue for the period is $250,000 and the sales price for Daytripper backpacks is $50, what is the budgeted sales price for Excursion backpacks?
a. $ 78.
b. $125.
c. $5130.
d. $158.
e. none of the above.

Answer 1

the budgeted sales price for Excursion backpacks is b. $125.

Step-by-step explanation:

Total Budgeted Revenue = Daytripper Budgeted Revenue + Excursion Budgeted Revenue

Therefore,

Let the budgeted sales price for Excursion backpacks be $y

$250,000 = 2,000 × $50 + 1.200 × $y

$150,000 = $1,200 y

$125 = y

Therefore, the budgeted sales price for Excursion backpacks is $125.