Barb's Best Pies is based in the Newtown and makes gourmet pies sold online to customers on credit(40% of sales) and to customers in the factory for cash(60% of sales).Barb's Best Pies is preparing a sales budget for the October-December quarter.Sales are estimated at 1,400 pies in October,1,200 pies in November and 2,600 pies in December.The average selling price per pie is $15.Credit customers pay 90 per cent in the month after sale.The remaining credit sales are bad.September sales were 1,300 pies.What is the total credit sales in November? A.7,200 B.6,480 C.18,000 D.None of the other options E.19,500
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Barb's Best Pies is based in the Newtown and makes gourmet pies sold online to customers on credit(40% of sales) and to customers in the factory for cash(60% of sales).Barb's Best Pies is preparing a sales budget for the October-December quarter.Sales are estimated at 1,400 pies in October,1,200 pies in November and 2,600 pies in December.The average selling price per pie is $15.Credit customers pay 90 per cent in the month after sale.The remaining credit sales are bad.September sales were 1,300 pies.What is the total credit sales in November?
A.7,200
B.6,480
C.18,000
D.None of the other options
E.19,500
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