Sales budgetPataky Co.’s sales manager estimates that 2,000,000 units of product RI#698 will be sold during the year. The product’s selling price is expected to decline as the result of technology changes during the year and estimates of the sales price are as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $17 $16 $14 $12 In talking with customers, the sales department discovered that sales quantities per quarter could vary substantially. Thus, the sales manager has prepared the following three sets of quarterly sales projections: Unit Sales 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Scenario A 600,000 300,000 640,000 460,000 2,000,000 Scenario B 400,000 700,000 250,000 650,000 2,000,000 Scenario C 530,000 480,000 800,000 190,000 2,000,000 If Pataky’s sales department is able to influence customers, what is the total revenue under each scenario?   Total Revenue Scenario A   Scenario B   Scenario C

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sales budget
Pataky Co.’s sales manager estimates that 2,000,000 units of product RI#698 will be sold during the year. The product’s selling price is expected to decline as the result of technology changes during the year and estimates of the sales price are as follows:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
$17 $16 $14 $12

In talking with customers, the sales department discovered that sales quantities per quarter could vary substantially. Thus, the sales manager has prepared the following three sets of quarterly sales projections:

Unit Sales 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total
Scenario A 600,000 300,000 640,000 460,000 2,000,000
Scenario B 400,000 700,000 250,000 650,000 2,000,000
Scenario C 530,000 480,000 800,000 190,000 2,000,000

If Pataky’s sales department is able to influence customers, what is the total revenue under each scenario?

  Total Revenue
Scenario A
 
Scenario B
 
Scenario C  

 

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