Health Resources expects to sell 490 units of Product A and 420 units of Product B each day at an average price of $16 for Product A and $27 for Product B The expected cost for Product A is 41% of its selling price and the expected cost for Product B is 63% of its selling price. Health Resources has no beginning inventory, but it wants to have a four-day supply of ending inventory for each product. Compute the company's budgeted sales for the next (seven-day) week. (Round the answer to the nearest dollar.)
A) $10,359
B) $76,720
C) $134,260
D) $19,180
C .C) Sales price x Expected number of units sold = Budgeted total sales
Product A: $16 x (490 units x 7 days) = $54,880
Product B: $27 x (420 units x 7 days) = $79,380
Total budgeted sales: $54,880 + $79,380 = $134,260
Business
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