Muraki Company has one product and sold 10,000 units in the first quarter of 2012.The company expects to sell 15% more units in the first quarter of 2013,at a price of $50 per unit.Based on this information,what is the amount of sales revenue that will appear in the budgeted income statement for the first quarter of 2013?
A)$500,000
B)$550,000
C)$575,000
D)$600,000
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

In the first quarter of 2013, Muraki Company expects to sell 15% more units than the first quarter of 2012. This means they expect to sell 10,000 x 1.15 = 11,500 units. 
The selling price is given as $50 per unit, therefore the sales revenue will be 11,500 units x $50 per unit = $575,000. 
Thus, the correct answer is (C).

Muraki Company Has One Product and Sold 10,000 Units in the First