Use the following information for questions
At January 1, 2016, Jake, Inc.has beginning inventory of 4,000 surfboards.Jake estimates it will sell 15,000 units during the first quarter of 2016 with a 10% increase in sales each quarter.Jake's policy is to maintain an ending inventory equal to 25% of the next quarter's sales.Each surfboard costs $200 and is sold for $250.
-How much is budgeted sales revenue for the third quarter of 2016?
A)$18,150
B)$4,537,500
C)$907,500
D)$3,750,000

Question

Use the following information for questions 
At January 1, 2016, Jake, Inc.has beginning inventory of 4,000 surfboards.Jake estimates it will sell 15,000 units during the first quarter of 2016 with a 10% increase in sales each quarter.Jake's policy is to maintain an ending inventory equal to 25% of the next quarter's sales.Each surfboard costs $200 and is sold for $250.
-How much is budgeted sales revenue for the third quarter of 2016?
A)$18,150
B)$4,537,500
C)$907,500
D)$3,750,000

Quizplus · Accepted Answer

Budgeted sales for the third quarter = (15,000 x 1.10 x 1.10) x $250 = $4,537,500

Use the Following Information for Questions