Question

Ratchet Manufacturing's August sales budget calls for sales of 8,000 units. Each month's sales are expected to exceed the prior month's results by 5%. The product selling price is $25 per unit. The expected total sales dollars for September's sales budget are:

Answer 1

Answer:

September sales in dollar 210,000

Explanation:

To get the total dollar sales for September first, we need to calculate how many units are expected.

The previous month, is August and we expect sales to grow at 5%

So we can calculate:

August sales in units 8,000

September = August + 5%

September = 8,000 x 1.05 = 8,400 units

Now, we multiply by the selling price with september sales. This will be our total revenue

8,400 units x $25 each = $210,000