Question
Sales budget Pataky Co.s sales manager estimates that 2,800,000 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 2,800,000 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 | 840,000 | 420,000 | 896,000 | 644,000 | 2,800,000 |
| Scenario B | 560,000 | 980,000 | 350,000 | 910,000 | 2,800,000 |
| Scenario C | 742,000 | 672,000 | 1,120,000 | 266,000 | 2,800,000 |
If Patakys sales department is able to influence customers, what is the total revenue under each scenario?
| Total Revenue | |
|---|---|
| Scenario A | Answer |
| Scenario B | Answer |
| Scenario C | Answer |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Applying IFRS Standards
Authors: Ruth Picker, Kerry Clark, John Dunn, David Kolitz, Gilad Livne, Jance Loftus, Leo Van Der Tas
4th Edition
1119159229, 9781119159223
