A company sells a product for $3. The company prepares a flexible budget at two sales volumes. At a sales volume of 50 units, budgeted sales will be $_____. At a sales volume of 60 units, budgeted sales will be $._____

A company sells a product for $3. The company prepares a flexible budget at two sales volumes. At a sales volume of 50 units, budgeted sales will be $_____. At a sales volume of 60 units, budgeted sales will be $._____

• A. 150; 180
• B. 150; 240
• C. 180; 180
• D. 180; 210

Answer: (A)

The main idea is that a flexible budget for sales revenue is simply price per unit times the planned sales volume. With a selling price of $3 per unit, budgeted sales equal 3 × volume. For 50 units: 3 × 50 = 150. For 60 units: 3 × 60 = 180. So the budgeted sales are 150 at 50 units and 180 at 60 units. The other options would require a different price per unit or inconsistent arithmetic, so they don’t fit the given price.

The main idea is that a flexible budget for sales revenue is simply price per unit times the planned sales volume. With a selling price of $3 per unit, budgeted sales equal 3 × volume.

For 50 units: 3 × 50 = 150.

For 60 units: 3 × 60 = 180.

So the budgeted sales are 150 at 50 units and 180 at 60 units. The other options would require a different price per unit or inconsistent arithmetic, so they don’t fit the given price.