The sales budget for Modesto Corp. shows that 12,000 units of Product A and 14,000 units of Product B are going to be sold for prices of $11 and $13, respectively. The desired ending inventory of Product A is 25% higher than its beginning inventory of 3,300 units. The beginning inventory of Product B is 3,800 units. The desired ending inventory of B is 4,300 units. Total budgeted sales of both products for the year would be: _________.

Respuesta :

Answer:

Total product A Sales = $132000

Total Product B Sales = $182000

Total Sales of Both Products = $314000

Explanation:

The Product A sales calculated using the formula = Budgeted Units Sold x Sales price Per Unit of Product A

Total Product A Sales = 12000 x $11 = $132000

The Product B sales calculated using the formula = Budgeted Units Sold x Sales price Per Unit of Product B

Total Product A Sales = 14000 x $13 = $182000

Total sales of Both product = Total Product A Sales + Total Product B Sales

Total Sales of Both Product = $132000 + $182000 = $314000

The budgeted sales for the Modesto Corp. is $314000

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