New York University ACCT-UB ACCT-UB 1002 1. A firm has provided a sales budget for the next 4 months. It…
Randy Company 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. Randy Company 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, Randy Company sold 150,000 pieces of push-button switches for $10 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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