Culinary Enterprises manufactures cookware sets and sells the sets to department stores. Culinary expects to sell 2 comma 600 cookware sets for $ 280.00 each in April and 3 comma 200 cookware sets for $ 295.00 each in May. Sales are 25% cash and 75% on account. Compute the total budgeted sales for May.

The Total Budgeted Sales of May is $944,000

Explanation:

Budgeted sales are those sales which a business estimated in a particular period of time. While budgeting the future value company calculated the sales cost and other expenses to minimize the uncertainty and prepare for the future.

As per given data

In May

Budgeted sales Volume = 3,200 cookwares

Budgeted price per unit = $295

Budgeted Sale value = Budgeted Volume x Budgeted Sales price = 3,200 cookwares x $295 = $944,000

Cash Sales  = $944,000 x 25% = $236,000

Credit Sales  = $944,000 x 75% = $708,000

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