How to calculate budgeted sales?
Understand the Problem
The question is asking for the method or formula to calculate budgeted sales, which typically involves estimating future sales based on past performance, market analysis, and other relevant factors.
Answer
Sales budget = sales volume (units) × selling price per unit
The sales budget is calculated by multiplying the expected sales volume (units) by the selling price per unit.
Answer for screen readers
The sales budget is calculated by multiplying the expected sales volume (units) by the selling price per unit.
More Information
A sales budget is an estimate of the revenue you expect to earn from sales over a certain period. It helps in planning and resource allocation.
Tips
Ensure you accurately forecast the sales volume based on market trends and historical data. Incorrect sales volume can lead to an inaccurate budget.
Sources
- Budgeting: How to Prepare a Cash and Functional Budget - futurelearn.com
- What Is a Sales Budget? Definition, What's Included - indeed.com
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