Question

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

Answer 1

Answer:

$210,000

Explanation:

With the provided information we have,

August budgeted sales = 8,000 units

Growth every month = 5% increase in units

Sales for September = 8,000 + (8,000 $\times$ 5%)

= 8,000 + 400 units = 8,400 units

Selling price = $25 for each unit

Therefore, expected sales total for the month of September = 8,400 $\times$ $25 = $210,000