Question

CORNERSTONE EXERCISES Cornerstone Exercise 8.1 Sales Budget Flash Kick Company manufactures and sells soccer balls for teams of children in elementary and high school, Flash Kick's best-selling lines are the practice ball line (durable soccer balls for (continued)

Answer 1

Requirement 1:

Flash kick company
Sales budget for the first quarter
	January	February	March	Total
Elementary:
Sales in number of units	50,000	58,000	80,000	188,000
Selling price per unit	$8.75	$8.75	$8.75	$8.75
Total for Elementary (A)	$437,500	$507,500	$700,000	$1,645,000
High School:
Sales in number of units	7,000	7,500	13,000	27,500
Selling price per unit	$16.00	$16.00	$16.00	$16.00
Total for High school (B)	$112,000	$120,000	$208,000	$440,000
Total Sales (A+B)	$549,500	$627,500	$908,000	$2,085,000

Requirement 2:

Flash kick company
Sales budget for the first quarter
	January	February	March	Total
Elementary:
Sales in nubmer of units	50,000	58,000	80,000
Selling price per unit	$8.75	$8.75	$8.75
Total for Elementary (A)	$437,500	$507,500	$700,000	$1,645,000
High School:
Sales in number of units	7,000	7,500	13,000
Selling price per unit	$16.00	$16.00	$16.00
Total for High school (B)	$112,000	$120,000	$208,000	$440,000
Tournament:
Sales in number of units	22,800	65,500	93,000
Selling price per unit	$45.00	$45.00	$48.00
Total for Tournament (C)	$1,026,000	$2,947,500	$4,464,000	$8,437,500
Total sales (A+B+C)	$1,575,500	$3,575,000	$5,372,000	$10,522,500

Calculations:

	January	February	March
Sales in number of units	50,000	58,000	80,000
Sales in number of units	7,000	7,500	13,000
Total match balls	57,000	65,500	93,000
Tournament (40% of match balls )	22,800	26,200	37,200