Question
Sales budget Pataky Co.s sales manager estimates that 1,200,000 units of product RI#698 will be sold during the year. The products selling price is expected
Sales budget Pataky Co.s sales manager estimates that 1,200,000 units of product RI#698 will be sold during the year. The products selling price is expected to decline as the result of technology changes during the year and estimates of the sales price are as follows:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter |
|---|---|---|---|
| $17 | $16 | $14 | $12 |
In talking with customers, the sales department discovered that sales quantities per quarter could vary substantially. Thus, the sales manager has prepared the following three sets of quarterly sales projections:
| Unit Sales | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total |
|---|---|---|---|---|---|
| Scenario A | 360,000 | 180,000 | 384,000 | 276,000 | 1,200,000 |
| Scenario B | 240,000 | 420,000 | 150,000 | 390,000 | 1,200,000 |
| Scenario C | 318,000 | 288,000 | 480,000 | 114,000 | 1,200,000 |
If Patakys sales department is able to influence customers, what is the total revenue under each scenario?
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Managerial Accounting Student Solution Manual Student Solution Manual 2nd Canadian Edition
Authors: Brenda Mallouk
0176407286, 978-0176407285
