Wimbledon, Inc. has 6,000 tennis rackets in beginning inventory. Wimbledon expects to sell 14,000 units during the first quarter of 2021 and sales are projected to increase by 12% increase in each quarter. Wimbledon requires an ending inventory target of 25% of the next quarter's sales. Each tennis racket cost $200 and is sold for $300. How much is budgeted sales revenue for the third quarter of 2021? A. $1,500,000 B. $35,124 C. $5,268,480 D. $5,700,000
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.
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