Question

7
Sales Budget Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $565, and the S12L5 sells for $357. Projected sales (number of speakers) for the coming five quarters are as follows: S12L7 S12L5 First quarter, 2011 800 1,300 Second quarter, 20Y1 2,200 1,400 Third quarter, 20Y1 5,300 5,600 4,600 Fourth quarter, 20Y1 3,900 First quarter, 20Y2 900 1,200 The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Required: Prepare a sales budget for each quarter of 20Y1 and for the year in total. Show sales by product and in total for each time period. Do not include a multiplication symbol as part of your answer.

Answer 1

Solution

Stillwater Designs
Sales Budget
For the Year Ended December 31, 20X1
	1st Qtr.	2nd Qtr.	3rd Qtr.	4th Qtr.	Year
S12L7:
Units	800	2200	5600	4600	13200
Price	$           565.00	$         565.00	$         565.00	$         565.00	$            565.00
Sales	$ 452,000	$ 1,243,000	$ 3,164,000	$ 2,599,000	$ 7,458,000
S12L5:
Units	1300	1400	5300	3900	11900
Price	$           357.00	$         357.00	$         357.00	$         357.00	$            357.00
Sales	$ 464,100	$ 499,800	$ 1,892,100	$ 1,392,300	$ 4,248,300
Total sales	$ 916,100	$ 1,742,800	$ 5,056,100	$ 3,991,300	$ 11,706,300