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Production and sales estimates for June are as follows:

Estimated inventory (units), June 1 8,000
Desired inventory (units), June 30 9,000
Expected sales volume (units):
Area X 4,000
Area Y 10,000
Area Z 6,000
Unit sales price $25

The budgeted total sales for June is

a.$500,000

b.$225,000

c.$525,000

d.$200,000

Respuesta :

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Expected sales volume (units):

Area X 4,000

Area Y 10,000

Area Z 6,000

Unit sales price $25

The total budgeted sales are the result of multiplying the sales in units for the selling price:

Total sales= selling price* number of units

Total sales= (4,000 + 10,000 + 6,000)*25= $500,000