George owns a small IT parts supply store, and he is in the process of creating a sales budget for next month. George predicts the following budgeted numbers: Sales Volume of 500 with a Budgeted Selling Price of $18 per unit. On average, George's store has experienced an average 5% rate of sales returns and discounts of 1.2% of the original selling price. What will the Budgeted Net Sales be for George next month?
A) $7,470
B) $8,442
C) $8,550
D) $8,892

Question

Quizplus · Accepted Answer

To calculate Budgeted Net Sales, you must first calculate the Budgeted Gross Revenue, Sales Returns, and Sales Discounts. Budgeted Gross Revenue is calculated for 500 units by multiplying by $18 per unit for a total of $9,000. From that value, subtract Sales Returns of $450 ($9,000 × 0.050) and Sales Discounts of $108 ($9,000 × 0.012). So, the Budgeted Net Sales for the month will be $8,442 ($9,000 F1F1F1S1?F1F1F10 $450 F1F1F1S1?F1F1F10 $108).

George Owns a Small IT Parts Supply Store, and He