Teal's Supplies sells camping equipment to people walking the Appalachian Trail. One of the fastest selling items is a tarp that can be used to lay on the ground or strung between trees for cover. The budgeted sales of that tarp are 25,000 units at a selling price of $35 with 5% returns and a 1.5% discount. What are the budgeted net sales for the tarp?

Question

Quizplus · Accepted Answer

Budgeted sales revenue is calculated by multiplying the budgeted sales units by the budgeted selling price. (25,000 × $35) = $875,000. Budgeted net sales are calculated by subtracting the sales returns and sales discounts from the budgeted sales revenue. Sales Returns ($875,000 × 5%) = $43,750, and Sales Discounts ($875,000 × 1.5%) = $13,125. Budgeted Net Sales = $875,000 F1F1F1S1?F1F1F10 $43,750 F1F1F1S1?F1F1F10 $13,125 = $818,125.

Teal's Supplies Sells Camping Equipment to People Walking the Appalachian