Author Question: The natural business year is a a. fiscal year that ends when business activities are at their ... (Read 62 times)

ghost!

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The natural business year is a
 a. fiscal year that ends when business activities are at their lowest point
  b. calendar year that ends when business activities are at their lowest point
  c. fiscal year that ends when business activities are at their highest point
  d. calendar year that ends when business activities are at their highest point

Question 2

Prescher Company sells three products with the following seasonal sales pattern:
 
  The annual sales budget shows forecasts for the different products and their expected selling price per unit to be as follows:
 
   Product Units Selling Price
   A 50,000  16
   B 125,000 40
   C 62,500 24
 
  Required:
  Prepare a sales budget, in units and dollars, by quarters for the company for the coming year.



voltaire123

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Answer to Question 1

a

Answer to Question 2

Answer: First Second Third Fourth
Quarter Quarter Quarter Quarter Total

Product A
Sales (in units) 20,000 15,000 10,000 5,000 50,000
 Price per unit 16 16 16 16 16
Sales (in dollars) 320,000 240,000 160,000 80,000 800,000

Product B
Sales (in units) 37,500 25,000 25,000 37,500 125,000
 Price per unit 40 40 40 40 40
Sales (in dollars) 1,500,000 1,000,000 1,000,000 1,500,000 5,000,000

Product C
Sales (in units) 6,250 18,750 31,250 6,250 62,500
 Price per unit 24 24 24 24 24
Sales (in dollars) 150,000 450,000 750,000 150,000 1,500,000

Total sales 1,970,000 1,690,000 1,910,000 1,730,000 7,300,000



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