36. At January 1, 2020, Jake, Inc. has beginnin 15,000 units during the first quarter of 2020 with a 10% increase in sales each quarter. Jake's polic maintain an ending inventory equal to 25% of the next quarter's sales. Each surfboard costs $200 sold for $250. How much is budgeted sales revenue for the third quarter of 2020? a) $18,150 b) $4,537,500 c) $907,500 d) $3,750,000
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.
![36. At January 1, 2020, Jake, Inc. has beginning inventory of 4,000 surfboards. Jake estimates it will sell
15,000 units during the first quarter of 2020 with a 10% increase in sales each quarter. Jake's policy is to
maintain an ending inventory equal to 25% of the next quarter's sales. Each surfboard costs $200 and is
sold for $250.
How much is budgeted sales revenue for the third quarter of 2020?
a) $18,150
b) $4,537,500
c) $907,500
d) $3,750,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e7931e3-c532-4440-b77b-3f956e8573e1%2F9977d959-2176-4333-9ad4-62b1016f8857%2Fqpe7u7p_processed.jpeg&w=3840&q=75)
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