SALES BUDGET Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for $300. Projected sales (number of speakers) for the coming five quarters are as follows:

S12L7 S12L5 First quarter, 2010 1,600 500 Second quarter, 2010 2,100 1,000 Third quarter, 2010 8,350 4,200 Fourth quarter, 2010 4,300 2,400 First quarter, 2011 1,650 750 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 2010 and for the year in total. Show sales by product and in total for each time period.

. How will Stillwater Designs use this sales budget?

Exercise