Christina Wadat is a sales manager at Walter Booksellers. She believes that the sales revenue will most likely to be $500 000 this coming year. However, she decides to build in budget slack of 10 per cent. The amount of sales revenue she inputs into the company's sales budget is

Question

Quizplus · Accepted Answer

Christina Wadat built in budget slack of 10%, which means she adds an additional 10% to her initial estimate of $500 000.

10% of $500 000 = $50 000

Thus, Christina's input to the company's sales budget is:

$500 000 + $50 000 = $550 000

Therefore, the correct answer is C) $550,000.

Christina Wadat Is a Sales Manager at Walter Booksellers