1. Push It Corporation produces push-button switches used in the manufacture of electric fans. For the year 2019, the sales of electric fans have been forecasted at 800,000 units. Each unit of electric fans requires 4 pieces of push-button switches. Push It regularly supplies 60% of the push-button switches used in the production of new electric fans. In addition, a replacement parts market also exists. Over the past 5 years, the sales of the replacement push-button switches have increased per year by 20% of the preceding year's sales. In 2018, Push It sold 150,000 pieces of push-button switches for P10 per piece in both markets. What is the budgeted sales revenue based on the expected number of pieces of push-button switches to be sold in 2019?
1. Push It Corporation produces push-button switches used in the manufacture of electric fans. For the year 2019, the sales of electric fans have been forecasted at 800,000 units. Each unit of electric fans requires 4 pieces of push-button switches. Push It regularly supplies 60% of the push-button switches used in the production of new electric fans. In addition, a replacement parts market also exists. Over the past 5 years, the sales of the replacement push-button switches have increased per year by 20% of the preceding year's sales. In 2018, Push It sold 150,000 pieces of push-button switches for P10 per piece in both markets. What is the budgeted sales revenue based on the expected number of pieces of push-button switches to be sold in 2019?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...
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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.
Question
What is the budgeted sales revenue based on the expected number of pieces of push-button switches to be sold in 2019?
Transcribed Image Text:1. Push It Corporation produces push-button switches used in the manufacture of
electric fans. For the year 2019, the sales of electric fans have been forecasted at
800,000 units. Each unit of electric fans requires 4 pieces of push-button switches.
Push It regularly supplies 60% of the push-button switches used in the production
of new electric fans. In addition, a replacement parts market also exists. Over the
past 5 years, the sales of the replacement push-button switches have increased per
year by 20% of the preceding year's sales. In 2018, Push It sold 150,000 pieces of
push-button switches for P10 per piece in both markets. What is the budgeted sales
revenue based on the expected number of pieces of push-button switches to be sold
in 2019?
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