Question

for the upcoming year, the hotel breton banquet department expects to generate $4,056,000 of revenue. based on historical trends, the company makes the most sales in the fourth quarter. as a result, it assumes that the fourth quarter will contribute 60% of the annual revenue. the remaining budgeted amount will be allocated equally between the other three each quarter, calculate the budgeted sales in dollars.

Answer 1

To calculate the budgeted sales, multiply the annual revenue by 0.60 for the fourth quarter. Then, divide the remaining budgeted amount equally between the other three quarters.

Step-by-step explanation:

To calculate the budgeted sales in dollars, we first need to determine the expected revenue for the fourth quarter. Since the fourth quarter is expected to contribute 60% of the annual revenue, we can calculate it by multiplying the annual revenue by 0.60. In this case, the expected revenue for the fourth quarter is $4,056,000 x 0.60 = $2,433,600.

Next, we need to divide the remaining budgeted amount equally between the other three quarters. To do this, we subtract the expected revenue for the fourth quarter from the annual revenue, and then divide the result by 3. In this case, the remaining budgeted amount is $4,056,000 - $2,433,600 = $1,622,400. So, the budgeted sales for each of the other three quarters is $1,622,400 ÷ 3 = $540,800.