Answer:
budget sale revenue = $2,069,760
Explanation:
given data
beginning inventory = 3000
sell = 11000 units
sales = 12% increase
ending inventory = 25%
surfboard costs = $100
sold = $150
to find out
How much is budgeted sales revenue for the third quarter of 2016
solution
first we will get here budget sales unit for quarter 3 that is
budget sales unit = ( 11000 × 112% ) 112%
budget sales unit = $13798.4
and
selling price is here $150
so
budget sale revenue for 3rd quarter sale is = budget sales unit × selling price
budget sale revenue = $13798.4 × $150
budget sale revenue = $2,069,760
If Sheffield estimates it will sell 11000 units during the first quarter of 2016 with a 12% increase in sales each quarter. The amount of the budgeted sales revenue for the third quarter of 2016 is $2,069,760
First step is to estimate first quarter sales
Estimated first quarter sales= 11,000 units + (11,000 units x 12%)
Estimated first quarter sales=11,000 units +1,320 units
Estimated second quarter sales in units=12,320 units
Second step is to estimate second quarter sales
Estimated second quarter sales= 12,320 units + (12,320 units x 12%)
Estimated second quarter sales= 12,320 units + 1,478.4 units
Estimated second quarter sales= 13,798.4 units
Third step is to calculate how much is budgeted sales revenue for the third quarter of 2016 using this formula
Budgeted Sales for Third Quarter=Estimated second quarter sales × Selling price per unit
Let plug in the formula
Budgeted Sales for Third Quarter=13,798.4 units × $150
Budgeted Sales for Third Quarter=$2,069,760
Inconclusion if Sheffield estimates it will sell 11000 units during the first quarter of 2016 with a 12% increase in sales each quarter. The amount of the budgeted sales revenue for the third quarter of 2016 is $2,069,760
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