Tanzeena is an accountant for Teal Vista Sales and has been asked to calculate budgeted sales returns and sales discounts for the next month. The sales budget for next month is 675,000 units at an average sales price of $105. Sales returns are budgeted at the 0.75% of sales, and sales discounts are budgeted at 3% of sales. What is the dollar amount of the sales discounts, and how many units are expected to be returned (round up to whole units)?

Question

Quizplus · Accepted Answer

Budgeted sales dollars must be calculated first, 675,000 × $105 = $70,875,000. Sales Discounts equal Budgeted Sales dollars × Sales Discount = $70,875,000 × 0.03 = $2,126.250. Sales Returns Units equal Sales Units × Sales Return Percentage = 675,000 × 0.0075 = 5,062.5 rounded up to 5,063 units.

Tanzeena Is an Accountant for Teal Vista Sales and Has