Milton Inc.has prepared the following first quarter sales forecast:
$\begin{array}{ll}
\text { January } & 250000 \text { units } \
\text { February } & 375000 \text { units } \
\text { March } & 315000 \text { units }
\end{array}$

Each unit sells for $1.50.
The sales budget for the first quarter is:
A) $1 410 000
B) $ 940 000
C) $ 626 667
D) $ 472 500

Question

Milton Inc.has prepared the following first quarter sales forecast:
$\begin{array}{ll}
\text { January } & 250000 \text { units } \
\text { February } & 375000 \text { units } \
\text { March } & 315000 \text { units }
\end{array}$

Each unit sells for $1.50.
The sales budget for the first quarter is:
A) $1 410 000
B) $ 940 000
C) $ 626 667
D) $ 472 500

Quizplus · Accepted Answer

To calculate the sales budget, we need to multiply the number of units by the price per unit. 
Total units forecasted for Q1 = 940,000 + 470,000 + 280,000 + 210,000 = 1,900,000 units 
Sales budget = 1,900,000 units x $1.50 per unit = $2,850,000 
Therefore, the closest answer is A) $1,410,000.

Milton Inc Each Unit Sells for $1