J.J.Johnson has decided to supplement his income by selling beehives.He expects to sell 25,000 hives in 2014.He ended 2013 with 2,500 completed hives in inventory and would like to complete operations in 2014 with at least 2,800 completed hives in inventory.There is no ending work in process inventory.One beehive holds about 250 bees.The bees are purchased for $4.00 per 1,000 bees.The hives sell for $15.00 each.
-What would be the total of the 2014 sales budget of Johnson?

Question

J.J.Johnson has decided to supplement his income by selling beehives.He expects to sell 25,000 hives in 2014.He ended 2013 with 2,500 completed hives in inventory and would like to complete operations in 2014 with at least 2,800 completed hives in inventory.There is no ending work in process inventory.One beehive holds about 250 bees.The bees are purchased for $4.00 per 1,000 bees.The hives sell for $15.00 each. 
-What would be the total of the 2014 sales budget of Johnson?

Quizplus · Accepted Answer

The total 2014 sales budget would be calculated by multiplying the expected number of hives to be sold (25,000) by the selling price per hive ($15.00), which equals $375,000.

JJJohnson Has Decided to Supplement His Income by Selling Beehives