Correct Answer:
Hill Industries |
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Sales Budget |
||
For the year ended December 2017 |
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Plan A |
Plan B |
|
Expected unit sale |
$ 7,74,000 |
$ 9,67,000 |
Units selling price |
$ 8.40 |
$ 7.50 |
Total sale |
$ 65,01,600 |
$ 72,52,500 |
Working:
Total sale in the year 2016 = $ 6,880,000 at $ 8 per unit, therefore total number of units sold in the year 2016 = (6880000/8) = 860,000
Number of unit sold in 2017 plan A = 860,000 * 0.90 = 774,000 units at $ 8.40 per unit
Plan B, number of units sold = 860,000+ 107000 = 967000 units at $ 7.50 per unit
End of answer.
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