Parker Corp expects to sell 4,000 units in October,and expects sales to increase 20% each month thereafter.Sales price is expected to stay constant at $8 per unit.What are budgeted revenues for the fourth quarter?

Question

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The budgeted revenues for the fourth quarter are $116,480. This is calculated by multiplying the expected sales for each month by the sales price per unit and then adding the results together.For October, the expected sales are 4,000 units, so the budgeted revenue is 4,000 * $8 = $32,000.For November, the expected sales are 20% more than October, or 4,800 units. So the budgeted revenue is 4,800 * $8 = $38,400.For December, the expected sales are 20% more than November, or 5,760 units. So the budgeted revenue is 5,760 * $8 = $46,080.Adding these three amounts together gives us the total budgeted revenue for the fourth quarter: $32,000 + $38,400 + $46,080 = $116,480.

Parker Corp Expects to Sell 4,000 Units in October,and Expects