Activity-Based Budget Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,050 for the Sleepeze, 12,070 for the Plushette, and 5,060 for the Ultima. Gene Dixon, vice president of sales, has provided the following Information: a. Salaries for his office (including himself at 567,000, a marketing research assistant at $36,800, and an administrative assistant at $22,050) are budgeted for $125,850 next year, b. Depreciation on the offices and equipment is $19,950 per year. c. Office supplies and other expenses total $18,550 per year. d. Advertising has been steady at $19,900 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 15 percent of first-year Ultima sales for a print and television campaign e. Commissions on the Sleepeze and Plushette lines are 5 percent of sales. These commissions are paid to Independent jobbers who sell the mattresses to retail stores t. Last year, shipping for the Sleepeze and Plushette lines averaged $45 per unit sold. Gene expects the ultima line to ship for 570 per unit sold since this model features a larger mattress Suppose that Gene is considering three sales scenarios as follows: Pessimistic Expected Optimistic Price Quantity Price Quantity Price Quantity Sleepeze 12,210 $205 15,050 $205 18,050 Plushette 10,400 348 12,070 359 14,420 870 960 5,060 1.190 5,060 Suppose Gene determines that next year's Sales Division activities include the following: $136 303 Ultima 2,160 Research researching current and it nowing: Research-researching current and future conditions in the industry Shipping-arranging for shipping of mattresses and handling calls from purchasing agents at retail stores to trace shipments and correct errors Jobbers--coordinating the efforts of the independent jobbers who sell the mattresses Basic ads-placing print and television ads for the Sleepeze and Plushette lines Ultima ads-choosing and working with the advertising agency on the Ultima account office management-operating the Sales Division office