BUDGETING

1.) Martin is a retailer engaged in selling sumptuous desserts. Martin sells four products as of the moment toasted pastillas, yema balls, red velvet crinkles, and sylvanas. Martin wants to required a sales budget for the fourth quarter of 2014 in order to properly anticipate his inflows of revenue.

Sales forecast in per pack of each product for EACH MONTH IS AS FOLLOWS

Toasted Yema Red Velvet Sylvanas

Pastillas Balls

October 15,000 18,000 12,000 6,500

November 24,000 18,500 14,000 5,000

December 42,000 20,000 18,000 7,000

Martin sells the product at the following prices. Toasted Pastillas 120/pack: Yema Balls 100/pack: Red velvet Crinkles 180/pack : and Sylvanas 200/pack

2.) Angels owns a merchandising business that sells imported mugs from other asian countries. Angel purchases these mugs from an outside supplier, once every quarter. she needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter, without having to incur stock outs and loss of costumer. angel has forecasted that unit sales for each quarter will be as follows:

1st quarter 15,000

2nd quarter 25,000

3rd quarter 35,000

4th quarter 40,000

Angel has initiated a policy that 10% of anticipated sales for the following month must be kept as a minimum balance of the previous months ending inventory. As of the beginning of the 1st quarter, there are 15,000 mugs unsold and angel plans to keep 18,000 mugs by the end of the fourth quarter. each mugs costs 75

a. required:purchase budget expressed in quantities to be purchase

b. required: purchases budget expressed in peso value.