Lloyd's produces and sells tennis rackets. The company requires that 22% of the next month’s projected sales (in units) are on hand at the end of each month. Lloyd's budgeted sales over the next four months are as follows: January February March April Budgeted Sales (in tennis rackets) 130,000 160,000 170,000 130,000 Based on this information, what would be budgeted production in number of units for March? Assume that the production policy has been followed to-date. Round your answer to the nearest whole number.
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.
Lloyd's produces and sells tennis rackets. The company requires that 22% of the next month’s projected sales (in units) are on hand at the end of each month. Lloyd's budgeted sales over the next four months are as follows:
| January | February | March | April | |
|
Budgeted Sales (in tennis rackets) |
130,000 | 160,000 | 170,000 | 130,000 |
Based on this information, what would be budgeted production in number of units for March?
Assume that the production policy has been followed to-date.
Round your answer to the nearest whole number.
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