Exercise 21-2 Edington Electronics Inc. produces and sells two models of pocket

Question

Exercise 21-2

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 2017 are as follows.

No changes in selling prices are anticipated.

Prepare a sales budget for the 2 quarters ending June 30, 2017. List the products and show for each quarter and for the 6 months, units, selling price, and total sales by product and in total.

Unit Sales Product XQ-103 XQ-104 Quarter 1 Quarter 2 20,000 12,000 22,000 15,000

Explanation / Answer

Sales budget :

Quarter 1 Quarter 2 Six months Units Selling price Total sales Units Selling price Total sales Units Selling price Total sales XQ-103 20000 15 300000 22000 15 330000 42000 15 630000 XQ-104 12000 25 300000 15000 25 375000 27000 25 675000 Totals 32000 600000 37000 705000 69000 1305000

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