Hygeia Health expects to sell 410 units of Product A and 390 units of Product B each day at an average price of $16 for Product A and $32 for Product B. The expected cost for Product A is 41% of its selling price and the expected cost for Product B is 59% of its selling price. Hygeia Health has no beginning inventory, but it wants to have a five−day supply of ending inventory for each product. Compute the budgeted cost of goods sold for the next (seven−day) week. (Round the answer to the nearest dollar.) A. $50,264 B. $95,200 C. $70,370 D.$ 62,910
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Hygeia Health expects to sell 410 units of Product A and 390 units of Product B each day at an average price of $16 for Product A and $32 for Product B. The expected cost for Product A is 41% of its selling price and the expected cost for Product B is 59% of its selling price. Hygeia Health has no beginning inventory, but it wants to have a five−day supply of ending inventory for each product. Compute the budgeted cost of goods sold for the next (seven−day) week. (Round the answer to the nearest dollar.)
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