Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alger Inc. manufactures six models of leaf blowers and weed eaters. Alger's budgeting team is finalizing the sales budget for the coming year. Sales in

Alger Inc. manufactures six models of leaf blowers and weed eaters. Alger's budgeting team is finalizing the sales budget for the coming year. Sales in units and dollars for last year follow:
Product Number Sold Price ($) Revenue
LB-114,70032 $ 470,400
LB-218,00020360,000
WE-625,20015378,000
WE-716,20010162,000
WE-86,90018124,200
WE-94,0002288,000
Total $1,582,600
In looking over the previous year's sales figures, Alger's sales budgeting team recalled the following:
Model LB-1 is a newer version of the leaf blower with a gasoline engine. The LB-1 is mounted on wheels instead of being carried. This model is designed for the commercial market and did better than expected in its first year. As a result, the number of units of Model LB-1 to be sold was forecast at 350% of the previous year's units.
Models WE-8 and WE-9 were introduced on July 1 of last year. They are lighter versions of the traditional weed eater and are designed for smaller households or condo units. Alger estimates that demand for both models will continue at the previous year's rate.
A competitor has announced plans to introduce an improved version of model WE-6, Alger's traditional weed eater. Alger believes that the model WE-6 price must be cut 35% to maintain unit sales at the previous year's level.
It was assumed that unit sales of all other models would increase by 10%, prices remaining constant.
Required:
Prepare a sales budget by product and in total for Alger Inc. for the coming year. Do not include a multiplication symbol as part of your answer.
Alger Inc.
Sales Budget
For the Coming Year
Model Units Price Total Sales
LB-1 fill in the blank 1
$fill in the blank 2
32
$fill in the blank 3
LB-2 fill in the blank 4
fill in the blank 5
20
fill in the blank 6
WE-6 fill in the blank 7
25,200
fill in the blank 8
fill in the blank 9
WE-7 fill in the blank 10
fill in the blank 11
10
fill in the blank 12
WE-8 fill in the blank 13
fill in the blank 14
fill in the blank 15
WE-9 fill in the blank 16
fill in the blank 17
22
fill in the blank 18
Total $fill in the blank 19

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

12th Edition

978-0073526706, 9780073526706

Students also viewed these Accounting questions