Milton Inc

question 38

Multiple Choice

Milton Inc. has prepared the following first quarter sales forecast: Each unit sells for $1.25.
The total budgeted sales for the first quarter is:

• A) $587,500
• B) $470,000
• C) $196,875
• D) $156,250

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Definitions:

Sales Tax

A consumption tax imposed by the government on the sale of goods and services.

Valuation Rate

The estimated or assessed value of an asset or liability for accounting and tax purposes.

Market Value

The current price at which an asset or service can be bought or sold in a market.

Assessed Valuation

The valuation assigned to property by a public tax assessor for the purpose of taxation.