Question

Beatrice Company estimates that unit sales of its lawn chairs will be 8,000 in October; 8,700 in November; and 9,650 in December.

Required:
Compute Beatrice’s sales budget for the fourth quarter assuming each unit sells for $27.50.

Answer 1

Following are the solution to this question:

Step-by-step explanation:

Oct Nov Dec 4th Quarter

Unit of budget sales
`7,200 \ \ \ \ \ \ \ \ \ \ \ \ 7,400 \ \ \ \ \ \ \ \ \ \ \ \ 7,100 \ \ \ \ \ \ \ \ \ \ \ \ 21,700`

Cost for sale
`27.5 \ \ \ \ \ \ \ \ \ \ \ \ \ \ 27.5 \ \ \ \ \ \ \ \ \ \ \ \ \ \ 27.5\ \ \ \ \ \ \ \ \ \ \ \ \ \ 27.5`

`\text{Complete selling Budgeted}`
`\$ \ 198,000 \ \ \ \ \ \ \$ \ 203,500 \ \ \ \ \ \ \$\ 195,250 \ \ \ \ \ \ \$ \ 596,750`