Chapter 12 Dubbo Pty Ltd manufactures and sells camping equipment. Included in t

Question

Chapter 12 Dubbo Pty Ltd manufactures and sells camping equipment. Included in the company's line of products are two types of backpacks, type A and type B. Sales of backpacks for the first quarter of the 2010-2011 financial year are budgeted as 12.3 follows (ignore GST Sales in units 8000 9000 6000 15 000 17 000 12 000 July August September Type A backpack sells for $15 and type B sells for S10. Past experience shows that losses from bad debts average 5% of sales. Required Prepare a monthly sales budget in dollars for this quarter.

Explanation / Answer

Monthly sales budget in dollars for this quarter =

Monthly Sales Budget Quarter Ended September 31, 2010 July August September Expected sales in units (A) 8000 9000 6000 Selling price per unit 15 15 15 Total Sales (A) 120000 135000 90000 Expected sales in units (B) 15000 17000 12000 Selling price per unit 10 10 10 Total Sales (B) 150000 170000 120000 Total Sales 270000 305000 210000

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