Zhang Industries sells a product for $700.Unit sales for May were 400 and each month's sales are expected to exceed the prior month's results by 3%.Compute the total budgeted sales dollars for the month ended June 30.
A)$280,000.
B)$297,000.
C)$271,600.
D)$288,400.
E)$364,000.

Question

Quizplus · Accepted Answer

First, we need to find the expected unit sales for June using the 3% increase from May:
400 x 1.03 = 412

Then, we can find the total budgeted sales for June by multiplying the expected unit sales by the selling price:
412 x 700 = $288,400

Therefore, the answer is D.

Zhang Industries Sells a Product for $700