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Darina [25.2K]
3 years ago
13

At January 1, 2019, Deer Corp. has beginning inventory of 2,000 surfboards. Deer estimates it will sell 10,000 units during the

first quarter of 2019 with a 12% increase in sales each quarter. Each surfboard costs $100 and is sold for $150. How much is budgeted sales revenue for the third quarter of 2019
Business
1 answer:
coldgirl [10]3 years ago
4 0

Answer:

The correct answer is $1,881,600

Explanation:

According to the scenario, the computation of the given data are as follows:

Unit sells = 10,000 units

Growth rate = 12%

Selling price = $150 per unit

Costing = $100 per unit

So, we can calculate the budget sales revenue by using following formula:

Budget sales unit for quarter 3 = (10,000 × 112%) × 112% = 12,544

So, budget sales amount for quarter 3 = 12,544 × $150

= $1,881,600

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