1. Edington Electronics Inc. produces and sells two models of pocket calculators
ID: 2382322 • Letter: 1
Question
1. Edington Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $15 and $25, respectively. Because of the intense competition Edington faces, management budgets sales semiannually. Its projections for the first 2 quarters of 2014 are as follows.
2. Prepare a sales budget for the 2 quarters ending June 30, 2014. List the products and show for each quarter and for the 6 months, units, selling price, and total sales by product and in total.
Explanation / Answer
Sales Budget
For the Six Months Ending June 30, 2014
Quarter 1
Product Units Selling Price Total Sales
XQ-103 20,000 $15 $300,000
XQ-104 12,000 25 300,000
Totals 32,000 $600,000
Quarter 2
XQ-103 25,000 $15 $375,000
XQ-104 15,000 25 375,000
Totals 40,000 $750,000
Six Months
XQ-103 45,000 $15 $675,000
XQ-104 27,000 25 675,000
Totals 72,000 $1,350,000
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