Zhang Industries sells a product for $700. Unit sales for May were 400 and each month's sales are expected to exceed the prior month's results by 3%.
-Compute the total sales dollars to be reported on the sales budget for month ended June 30.
A) $297,000.
B) $288,400.
C) $280,000.
D) $364,000.
E) $271,600.

Question

Zhang Industries sells a product for $700. Unit sales for May were 400 and each month's sales are expected to exceed the prior month's results by 3%. 
-Compute the total sales dollars to be reported on the sales budget for month ended June 30.
A) $297,000.
B) $288,400.
C) $280,000.
D) $364,000.
E) $271,600.

Quizplus · Accepted Answer

Step 1: Calculate the expected unit sales for June 
Expected unit sales for June = 400 x 1.03 = 412

Step 2: Calculate the total sales for June 
Total sales for June = $700 x 412 = $288,400

Therefore, the total sales dollars to be reported on the sales budget for the month ended June 30 will be $288,400.

Zhang Industries Sells a Product for $700