Question

Robust Resources expects to sell 440 units of Product A and 400 units of Product B each day at an average price of $18 for Product A and $27 for Product B. The expected cost for Product A is 40% of its selling price and the expected cost for Product B is 64% of its selling price. Robust Resources has no beginning inventory, but it wants to have a three-day supply of ending inventory for each product. Compute the company's budgeted sales for the next (seven-day) week. (Round the answer to the nearest dollar.) O A. $18,720 B. $56,160 O c. $10,080 O D. $131,040

Answer 1

Answer:

Company's budgeted sales for the next week=$131,040

Explanation:

Step 1

Determine the total sales per day for Product A

Total sales=price per unit×expected number of units to be sold

where;

price per unit=$18

expected number of units to be sold=440 units

replacing;

Total product A sales per day=(18×440)=$7,920

Step 2

Determine total product B sales per day

Total sales=price per unit×expected number of units to be sold

where;

price per unit=$27

expected number of units to be sold=400 units

replacing;

Total product B sales per day=(27×400)=$10,800

Step 3

Total sales per day=total product A sales+total product B sales

total sales per day=(7,920+10,800)=$18,720

For the week=18,720×7=$131,040

Company's budgeted sales for the next week=$131,040