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QUESTION 2 Scholar Suppliers manufactures backpacks for students. The backpacks come in two sizes: Small, and...

QUESTION 2

Scholar Suppliers manufactures backpacks for students. The backpacks come in two sizes: Small, and Large. Scholar Suppliers anticipates the following sales volumes and prices for the coming period:

Size

Sales Volume

Selling Price

Small

3,000 backpacks

$25 each

Large

6,000 backpacks

$75 each


What is the budgeted level of revenue for the coming period?

Business   Accounting   
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Answer #1

BUDGETED LEVEL OF REVENUE = REVENUE OF SMALL + REVENUE OF LARGE BACKPACK

                                                           = ( 3000 * 25) + ( 6000 * 75)

                                                         = 75000 + 450000

                                                          = $ 525000

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