At January 1, 2016, Deer Corp. has beginning inventory of 2,000 surfboards. Deer estimates it will sell 10,000 units during the

Question

4 years ago

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At January 1, 2016, Deer Corp. has beginning inventory of 2,000 surfboards. Deer estimates it will sell 10,000 units during the

first quarter of 2016 with a 12% increase in sales each quarter. Deer's policy is to maintain an ending inventory equal to 25% of the next quarter's sales. Each surfboard costs $100 and is sold for $150. How much is budgeted sales revenue for the third quarter of 2016?

Business

1 answer:

BlackZzzverrR [31] · Answer 1 · 2021-11-30T18:36:52+03:00

Answer:

Sales revenue= $1,881,600

Explanation:

Giving the following information:

Deer estimates it will sell 10,000 units during the first quarter of 2016 with a 12% increase in sales each quarter. Each surfboard costs $100 and is sold for $150.

Sales:

First quarter= 10,000

Second quarter= 10,000*1.12= 11,200

Third quarter= 11,200*1.12= 12,544

Sales revenue= 12,544*150= $1,881,600