What the budgeted sales revenue based on the expected number

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Ethel Corporation produces push-button switches used in the manufacture of electric fans. For the year 2021, the sale of electric fans has been forecasted at 800,000 units. Each unit of electric fan requires 4 pieces of 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 2020, Ethel Corporation sold 150,000 pieces of push-button replacement switches. The trend is expected to continue in 2021.

The company sells the push-button switches for P10 per piece in both markets.

Problem 1: The budgeted sales revenue based on the expected number of pieces of push-button switches to be sold in 2021 is

a. 2,100,000

b. 19,200,000

c. 20,700,000

d. 21,000,000

Reference no: EM132693788

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