Calculate the revenue amounts for 2018 and 2017

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Reference no: EM133433780

Revenue

Sales to US customers and customers in other countries are invoiced in US dollars and the Canadian dollar value equivalents of the US dollar payments received are recognized as revenue. The average exchange rate for 2018 for US dollar sales was US $1 = CAN $1.019, and for 2017 was US $1 = CAN $ 1.105. Sales to Canadian customers are invoiced in Canadian dollars that represent the equivalents of the US dollar values of the sales on the dates that the bats are invoiced. US dollar sales accounted for approximately 75% of sales revenue in 2018 and 2017.

Projected Sales

Justin Mauer, who is in charge of the sales function, has prepared a sales projection for the next three fiscal years on the assumption that production capacity is expanded. The projection includes the following information:

Fiscal Year Ending December 31 2019 2020 (number of bats) 2021

Choice Stock 9,600 12,000 13,800

Exclusive Barrel Model IBH-Pro 1,000 2,000 2,500

Model KM-Regular 1,200 2,400 3,000

2,200 4,400 5,500

Little League 3,200 3,600 4,000

15,000 20,000 23,300

Selling prices will remain the same for fiscal 2019 sales as those charged for fiscal 2018 sales. Justin believes that selling prices will not change in the foreseeable future. Justin estimates that selling expenses will be 8% of revenue stated in US dollars from the sale of bats for fiscal 2019 and for the foreseeable future.

Sales for 2018

Choice stock model

Quantity sold 7,214

Price in USD $100

Revenue $721,400

Sales for 2017

Quantity sold 4320

Exclusive barrel model

Quantity sold in 2018

472 * $130 =$61,360

816 * $120 = $97,920

Revenue =$159,280

Quantity sold in 2017 =432

Little League model

Quantity sold in 2018 =3,046

Price in USD =$60

Revenue =$182,760

Quantity sold in 2017 =2,030

Calculate the revenue amounts for 2018 and 2017 for BB's balance sheet

Reference no: EM133433780

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