Garland Inc. manufactures six models of molded plastic waste containers. Garland’s budgeting team is finalizing the sales budget for the coming year. Sales in units and dollars for last year follows Model Number Sold Price Revenue W-1 16,800 $9 $151,200 W-2 18,000 15 270,000 W-3 25,200 i 327,600 W-4 16,200 10 162,000 W-5 2,400 UD 52,800 W-6 1,000 26 26,000 Total $989,600 In looking over the previous year’s sales figures, Garland’s sales budgeting team recalled the following:

a. Model W-1 costs were rising faster than price could rise. Preparatory to phas- ing out this model, Garland Inc. planned to slash advertising for this model and raise its price by 50 percent. The number of units of model W-1 to be sold were forecast at 20 percent of the previous year’s units.

b. Models W-5 and W-6 were introduced on November 1 last year. They are brightly colored, heavy-duty, wheeled garbage containers designed for household use. Garland estimates that demand for both models will continue at the previous year’s rate.

c. A competitor has announced plans to introduce an improved version of model W-3. Garland believes that the model W-3 price must be cut 20 percent to main- tain unit sales at the previous year’s level.

d. It was assumed that unit sales of all other models would increase by 10 percent, prices remaining constant.

Required:

Prepare a sales budget by product and in total for Garland Inc. for the coming year.