Glacier Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Glacier anticipates the following sales volumes for the coming period:
If total budgeted revenue for the period is $250,000 and the sales price for Daytripper backpacks is $50, what is the budgeted sales price for Excursion backpacks?

Question

Glacier Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Glacier anticipates the following sales volumes for the coming period:
 If total budgeted revenue for the period is $250,000 and the sales price for Daytripper backpacks is $50, what is the budgeted sales price for Excursion backpacks?

Quizplus · Accepted Answer

Total budgeted sales revenue = Budgeted sales price x Budgeted sales volume
$250,000 = ($50 x 2,000) + (E x 1,200)
$250,000 = $100,000 + (E x 1,200)
$150,000 = E x 1,200
E = $150,000/1,200
E = $125

Glacier Trails Manufactures Backpacks for Adventurers