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Workman Co . ( Workman ) had sales of 1 5 , 0 0 0 units of its only product in Year 1 0

 

Workman Co. (Workman) had sales of 15,000 units of its only product in Year 10, with a selling price of $66 per unit. In Year 11, the sales manager anticipates Workman selling 20% more units than it sold in Year 10, with a selling price of $68 per unit.

The controller decides to use a traditional budgeting approach and to apply a conservative increase of 10% to all income statement line items.

Which one of the following is the amount of sales revenue that will appear in the budgeted income statement for Year 11 using the controllers approach?

A. $1,089,000

B. $1,224,000

C. $1,188,000

D. $1,122,000

 

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