Culinary Enterprises Manufactures Cookware Sets and Sells the Sets to Department

question 44

Multiple Choice

Culinary Enterprises manufactures cookware sets and sells the sets to department stores.Culinary expects to sell 2600 cookware sets for $220 each in April and 3000 cookware sets for $235 each in May.Sales are 25% cash and 75% on account.Compute the total budgeted sales for May.

• A)$705,000
• B)$572,000
• C)$176,250
• D)$528,750

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Definitions:

Fixed Cost

Expenses that do not change with the level of goods or services produced by the business, such as rent for a building.

Managerial Levers

Tools or methods used by managers to influence the performance and direction of their organization.

Large Lots

Refers to the practice of bulk buying or producing goods in significant quantities to achieve economies of scale.

Fixed Cost

Expenses that do not change with the level of goods or services produced over the short term.