Robust Resources expects to sell 490 units of Product A and 420 units of Product B each day at an average price of $16 for Product A and $27 for Product B.The expected cost for Product A is 41% of its selling price and the expected cost for Product B is 63% of its selling price.Robust Resources has no beginning inventory,but it wants to have a four-day supply of ending inventory for each product.Compute the company's budgeted sales for the next (seven-day)week.(Round the answer to the nearest dollar.)
A) $10,359
B) $76,720
C) $134,260
D) $19,180

Question

Quizplus · Accepted Answer

Sales price × Expected number of units sold = Budgeted total sales
Product A: $16 × (490 units × 7 days) = $54,880
Product B: $27 × (420 units × 7 days) = $79,380
Total budgeted sales: $54,880 + $79,380 = $134,260

Robust Resources Expects to Sell 490 Units of Product a and 420