Question

Culinary Enterprises manufactures cookware sets and sells the sets to department stores. Culinary expects to sell 2,700 cookware sets for $ 260.00 each in April and 3,400 cookware sets for $ 275.00 each in May. Sales are 25​% cash and 75​% on account. Compute the total budgeted sales for May.

Answer 1

Answer:

sales revenue for May 935,000

sales collection for May 760,250

Explanation:

May sales collected on May:

3,400 cookware x $ 275 = 935,000 sales revenue

from which, 25% are cash sales: 233,750

April sales collected on May:

2,700 cookware x $ 260 = 702,000 sales revenue

from which, 75% on account: 526,500‬

Total May sales collection: 233,750 + 526,500 = 760,250