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Average Profit $21,763,600 Budgeting: Create a sales budget using the information for earning an average gross profit for the year. You will break the budget
Average Profit $21,763,600
- Budgeting:
- Create a sales budget using the information for earning an average gross profit for the year. You will break the budget down into the four quarters for the year. (Sales tend to be consistent each quarter, you can only sale a whole unit so round-up if necessary) Use table 6 to complete the sales budget.
- Create a production budget for each quarter of the year (keep it in quarters; you do not need to break it down by month). You desire to keep 10% of next quarters sales in ending inventory. Sales for Qtr 1 the following year (year 2) are expected to be 450,000 cases of cookies. There is not any beginning finished goods inventory for quarter one this year. Use table 7 to complete the production budget.
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