Answer: please see explanation column
Explanation:
Rumble Thunder
Estimated inventory (units), June 1 750 300
Desired inventory (units), June 30 500 250
Expected sales volume (units):
Midwest Region 12,000 3,500
South Region 14,000 4,000
Unit sales price $60 $90
a) Sonic Inc. Sales Budget for June
Unit Sales Vol Unit Selling price Total Sales
Model Rumble:
Midwest Region 12000 60 $720,000
South Region 14000 60 $840,000
Total 1,560,000
Model Thunder:
Midwest Region 3500 $90 $315,000
South Region 4000 $90 $360,000
Total $675,000
Total revenue from sales 1,560,000 + $675,000 =$2,235,000
B) Sonic Inc. Production budget for June
Units Model Rumble Units Model Thunder
Expected units to be sold 26000 7500
Add: Desired ending inventory + 500 + 250
Total units required 26500 7750
Less: Beginning inventory - 750 - 300
Total units to be produced $25750 $ 7450
Calculation :
Expected units to be sold =12,000 + 14,000 = $26,000
3,500 + 4,000 = $7,500
Total units required=Expected units to be sold+ Desired ending inventory
26000 +500 =$26,500
7,500 +250= $7,750
