The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the budgeted cash disbursements for selling and administrative expenses for April total $195,500, then how many Debs does the company plan to sell in April?

Question

The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available:  All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the budgeted cash disbursements for selling and administrative expenses for April total $195,500, then how many Debs does the company plan to sell in April?

Quizplus · Accepted Answer

11eacbfc_c602_2dd4_8ffe_fb3cc925f051_TB7552_00 Budgeted cash disbursements for selling and administrative expenses = ($170,000 − $20,000) + ($2.50 per unit × Number of units sold)
$195,500 = ($170,000 − $20,000) + ($2.50 per unit × Number of units sold)
$195,500 = $150,000 + ($2.50 per unit × Number of units sold)
$2.50 per unit × Number of units sold = $195,500 − $150,000
$2.50 per unit × Number of units sold = $45,500
Number of units sold = $45,500 ÷ $2.50 per unit = 18,200 units

The Puyer Corporation Makes and Sells Only One Product Called