Question

Sunland Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Vanessa Aaron, the company’s sales manager, prepared the following sales forecast for 2018. The forecasted sales prices include a 5% increase in the acoustic guitar price and a 10% increase in the electric guitar price, to cover anticipated increases in raw materials prices.

		Sales Price			1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
Acoustic guitar sales		$1,270			190			250			310			310
Electric guitar sales		$2,400			420			360			320			360

Prepare Sunland’s sales budget for 2018.

Sales Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th  Quarter	Annual
Acoustic:
Budgeted revenueBudgeted units soldBudgeted sales price
Budgeted sales priceBudgeted units soldBudgeted revenue	$	$	$	$	$
Budgeted units soldBudgeted sales priceBudgeted revenue	$	$	$	$	$
Electric:
Budgeted revenueBudgeted sales priceBudgeted units sold
Budgeted units soldBudgeted sales priceBudgeted revenue	$	$	$	$	$
Budgeted sales priceBudgeted revenueBudgeted units sold	$	$	$	$	$
Total revenue	$	$	$	$	$

Answer 1

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Annual
Acoustic:
Budgeted units sold	190	250	310	310	1060
Budgeted sales price	1270	1270	1270	1270	1270
Budgeted revenue	241300	317500	393700	393700	1346200
Electric:
Budgeted units sold	420	360	320	360	1460
Budgeted sales price	2400	2400	2400	2400	2400
Budgeted revenue	1008000	864000	768000	864000	3504000
Total revenue	1249300	1181500	1161700	1257700	4850200