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will you help me correct number 2? Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager
will you help me correct number 2?
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1 32.000 Quarter 2 52.000 Quarter 3 26.000 Quarter 4 52.000 Budgeted Unit Sales Each T-shirt is expected to sell for $20. . The purchasing manager buys the T-shirts for $8 each . The company needs to have enough T-shirts on hand at the end of each quarter to fill 30 percent of the next quarter's sales demand. . Selling and administrative expenses are budgeted at $64.000 per quarter plus 16 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for each quarter. Answer is complete and correct. Quarter 1 Quarter 2 Quarter 3 $ 640,000 $1 040,000 $ 520,000 Budgeted Sales Revenue 2. Determine budgeted cost of merchandise purchased for each quarter. Answer is complete but not entirely correct. Quarter 1 Quarter 2 Quarter 3 Budgeted Cost of Merchandise 38,000 Xs Purchased 44 200 X 33,800 X
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