Question

Manhattan Enterprises manufactures cookware sets and sells the sets to department stores. Manhattan expects to sell 2,100 cookware sets for $260 each in April and 3,900 cookware sets for $275 each in May. Sales are 10% cash and 90% on account. Compute the total budgeted sales for May.

Answer 1

Answer:

May sales collection

May cash sales                 107,250

April account sales          491,400  

Total sales collection       598,650

Explanation:

On May we will collect the cash sales for May

And the sales on account for April, we need to calcualte and add these two values.

Sales for May

3,900 x 275 = 1,072,500

Cash Sales for May  

10% of may sales: 107,250

Sales from April

2,100 x 260 = 546,000

Credit sales for April

546,000 x 90% = 491,400