Stuart Corporation recorded sales of $200,000 during March.Management expects sales to increase 5% in April,another 4% 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

1. Calculate the expected sales for April: $200,000 x 1.05 = $210,000
2. Calculate the expected sales for May: $210,000 x 1.04 = $218,400
3. Calculate the expected sales for June: $218,400 x 1.10 = $240,240

4. Calculate the cost of goods sold for June: $240,240 x 0.80 = $192,192

5. Calculate the budgeted gross profit for June: $240,240 - $192,192 = $48,048

Therefore, the correct choice is B.

Stuart Corporation Recorded Sales of $200,000 During March