Workman Co$.($Workman$)$ had sales of $15,000$ units of its only product in Year $10,$ with a selling price of $$66$ per unit. In Year $11,$ the sales manager anticipates Workman selling $20\%$ more units than it sold in Year $10,$ with a selling price of $$68$ per unit.

The controller decides to use a traditional budgeting approach and to apply a conservative increase of $10\%$ to all income statement line items.

Which one of the following is the amount of sales revenue that will appear in the budgeted income statement for Year $11$ using the controller$’$s approach?

A$.$ $$1,089,000$

B$.$ $$1,224,000$

C$.$ $$1,188,000$

D$.$ $$1,122,000$

 

Answer rating: 100% (QA)

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