In the last accounting period, an operation achieved total sales of $120,000. The operation's manager then budgeted a 4.5 percent sales increase for the next accounting period. What will be the manager's budgeted sales amount for the next accounting period?

Question

Quizplus · Accepted Answer

The budgeted sales amount for the next accounting period is calculated by increasing the total sales of $120,000 by 4.5 percent. This is done by multiplying $120,000 by 1.045 (100% + 4.5% = 104.5% or 1.045 in decimal form), which equals $125,400.

In the Last Accounting Period, an Operation Achieved Total Sales