Health Resources expects to sell 480 units of Product A and 440 units of Product B each day at an average price of $19 for Product A and $32 for Product B.The expected cost for Product A is 40% of its selling price and the expected cost for Product B is 62% of its selling price.Health Resources has no beginning inventory,but it wants to have a six-day supply of ending inventory for each product.Compute the company's budgeted sales for the next (seven-day)week.(Round the answer to the nearest dollar.)
A) $12,378
B) $139,200
C) $162,400
D) $23,200

Question

Quizplus · Accepted Answer

C) Sales price × Expected number of units sold = Budgeted total sales
Product A: $19 × (480 units × 7 days) = $63,840
Product B: $32 × (440 units × 7 days) = $98,560
Total budgeted sales: $63,840 + $98,560 = $162,400

Health Resources Expects to Sell 480 Units of Product a and 440