1. Push It Corporation produces push-button switches us electric fans. For the year 2019, the sales of electric fan 800,000 units. Each unit of electric fans requires 4 pieces Push It regularly supplies 60% of the push-button switch of new electric fans. In addition, a replacement parts ma past 5 years, the sales of the replacement push-button sw vear by 20% of the preceding vear's sales, In 2018 Push

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%

Please answer it in Good form with explanations. thank you

1. Push It Corporation produces push-button switches used in the manufacture of
electric fans. For the year 2019, the sales of electric fans have been forecasted at
800,000 units. Each unit of electric fans requires 4 pieces of push-button switches.
Push It regularly supplies 60% of the push-button switches used in the production
of new electric fans. In addition, a replacement parts market also exists. Over the
past 5 years, the sales of the replacement push-button switches have increased per
year by 20% of the preceding year's sales. In 2018, Push It sold 150,000 pieces of
push-button switches for P10 per piece in both markets. What is the budgeted sales
revenue based on the expected number of pieces of push-button switches to be sold
in 2019?
Transcribed Image Text:1. Push It Corporation produces push-button switches used in the manufacture of electric fans. For the year 2019, the sales of electric fans have been forecasted at 800,000 units. Each unit of electric fans requires 4 pieces of push-button switches. Push It regularly supplies 60% of the push-button switches used in the production of new electric fans. In addition, a replacement parts market also exists. Over the past 5 years, the sales of the replacement push-button switches have increased per year by 20% of the preceding year's sales. In 2018, Push It sold 150,000 pieces of push-button switches for P10 per piece in both markets. What is the budgeted sales revenue based on the expected number of pieces of push-button switches to be sold in 2019?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Planning
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education