alleryStart learning →A company budgets 2,600 bicycle helmets at $50 each and 4,800 ski helmets at $130 each. What is total budgeted sales revenue?
A$624,000
B$130,000
C$680,000
D$754,000
Answer & Solution
Correct answer: D. $754,000
1. Budgeted sales in dollars is expected sales volume times expected selling price, product by product.
2. Bicycle helmets give 2,600 units times $50, which is $130,000.
3. Ski helmets give 4,800 units times $130, which is $624,000.
4. Total sales revenue is $130,000 plus $624,000, which is $754,000.
5. That total is what carries forward to the budgeted income statement.
_Source: Jonick, Principles of Managerial Accounting (UNG Press, CC BY-SA 4.0), section 7.6 Sales Budget_
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