Question

Budget Preparation Reeves Company is preparing its master budget for July. Use the given estimates to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories A and B estimate sales of 8,000 and 20,000 units, respectively, and the unit selling price is $55

Answer 1

Answer and Explanation:

Particulars                         A                                  B                        Total

Sales units                   8,000                    20,000          28,000

Sales Price per unit          $50                            $50                        $50

Total Sales revenue      $400,000              $1,000,000    $1,400,000

We simply multiplied the sales units with the sales per unit so that the total sales revenue come