Answer to Question #80112 in Finance for Hugh Heron

Question

What is the impact on income when the actual sales figures are used?

calculate the loss of income using product A 12000 units


A furniture manufacturer predicts that they will sell 12,000 of product A and 8,000 of product B in the next financial period. They prepare their budget accordingly.

Answer 1

Sales are the proceeds from the selling of goods or services to its customers.
In accounting terms, sales make up one component of a company's revenue.
On an income statement, sales are usually referred to as gross sales or the top line since sales are often used interchangeably with income.
The company's revenue directly depends on the sales figure.
The amount of sales and the price are taken into account to determine the gross income of a company.
The income in this example is taken into account:

- price of goods A;
- price of goods B.
With any price change or quantity of goods, the final income indicator will also change.