Question

Preston's Parties specilized in custom birthday parties for children for an average price of $1600. He receives a 20% deposit two months in advance, a payment of 50% one month in advance and the remaining 30% on the day of the party. Preston anticipates the following number of parties for each of the next six months: March April May June July August ܗ ܚ ; ܠܪ ܗ ܚ Part A: calculate expected revenue for March - August March April May June July August Total Revenue Receipts Budget March April May June July August Total Receipts for Period March Sales April Sales May Sales June Sales July Sales August Sales Total . . . . . .

Answer 1

Part A: Expected revenue for March - August

March	8000
April	4800
May	24000
June	6400
July	8000
August	3200
Total Revenue $	54400

Working:

March	=5*1600
April	=3*1600
May	=15*1600
June	=4*1600
July	=5*1600
August	=2*1600

Receipts Budget

	March	April	May	June	July	August	Total Receipts for Period
March sales	2400						2400
April sales	2400	1440					3840
May sales	4800	12000	7200				24000
June sales		1280	3200	1920			6400
July sales			1600	4000	2400		8000
August sales				640	1600	960	3200
Total	9600	14720	12000	6560	4000	960	47840

Working:

	March	April	May	June	July	August
March sales	=8000*0.3
April sales	=4800*0.5	=4800*0.3
May sales	=24000*0.2	=24000*0.5	=24000*0.3
June sales		=6400*0.2	=6400*0.5	=6400*0.3
July sales			=8000*0.2	=8000*0.5	=8000*0.3
August sales				=3200*0.2	=3200*0.5	=3200*0.3