A company sells a product for $3. The company prepares a flexible budget at two sales volumes. At a sales volume of 50 units, budgeted sales will be $. At a sales volume of 60 units, budgeted sales will be $.
Question
A company sells a product for . At a sales volume of 60 units, budgeted sales will be $.
Solution
To calculate the budgeted sales, you need to multiply the sales volume by the price per unit.
Step 1: Calculate budgeted sales for 50 units The price per unit is 3/unit = $150.
Step 2: Calculate budgeted sales for 60 units Similarly, if the company sells 60 units, the budgeted sales will be 60 units * 180.
So, at a sales volume of 50 units, budgeted sales will be 180.
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