Thomas Corporation recorded sales of $200,000 during March.Management expects sales to increase 5% in April,another 2% in May,and another 10% in June.Cost of goods sold is expected to be 80% of sales.What is the budgeted gross profit for June?

Question

Quizplus · Accepted Answer

A)
$200,000 × 1.05% = 210,000 × 1.02% = 214,200 × 1.10% = $235,620
Now Sales × 80% = Cost of Goods Sold - 188,496 = Gross Profit $47,124

Thomas Corporation Recorded Sales of $200,000 During March