To determine the budgeted revenue for 2021, we need to calculate the expected sales for each product based on a 2% increase in sales if the prices remain the same.
First, let’s calculate the expected sales for each product in 2021:
Product A:
Sales in 2020: 2,000 units
Expected increase: 2% (0.02)
Expected sales in 2021: 2,000 + (2,000 * 0.02) = 2,040 units
Product B:
Sales in 2020: 5,000 units
Expected increase: 2% (0.02)
Expected sales in 2021: 5,000 + (5,000 * 0.02) = 5,100 units
Product C:
Sales in 2020: 1,500 units
Expected increase: 2% (0.02)
Expected sales in 2021: 1,500 + (1,500 * 0.02) = 1,530 units
Next, let’s calculate the budgeted revenue for each product in 2021 by multiplying the expected sales by the selling price per unit:
Product A:
Expected sales in 2021: 2,040 units
Selling price per unit: $10
Budgeted revenue for Product A in 2021: 2,040 * $10 = $20,400
Product B:
Expected sales in 2021: 5,100 units
Selling price per unit: $12
Budgeted revenue for Product B in 2021: 5,100 * $12 = $61,200
Product C:
Expected sales in 2021: 1,530 units
Selling price per unit: The selling price for Product C is not provided.
Therefore, we cannot calculate the budgeted revenue for Product C without this information.
Finally, to determine the total budgeted revenue for 2021, we sum up the budgeted revenue for each product:
Total budgeted revenue for 2021 = Budgeted revenue for Product A + Budgeted revenue for Product B + Budgeted revenue for Product C
Since we don’t have the selling price per unit for Product C, we cannot determine the total budgeted revenue for 2021 without this information.
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