Cash budgeting - Australian Super Sports Limited Group 4 Number of sales by sales department: Active sportswear Footwear Accessories Licenced merchandise Sports equipment Equipment repairs Average sales spend per sale: Active sportswear Footwear Accessories Licenced merchandise Sports equipment Equipment repairs Forecast total sales by sales department: Active sportswear Footwear Accessories Licenced merchandise Sports equipment Equipment repairs Total projected sales revenue for sales departments: New service forecasting New service: Sports tourism Marketing forecasts (optimistic) Number of travel sales Average predicted sales value {per sale} Optimistic sales revenue from service Revised analytics for sports tourism Probability of achieving forecast bootcamp enrolments Probability of 25% forecast Probability of 50% forecast Probability of 75% forecast Probability of 100% of forecast Total overall probability of forecast? Total likely forecast (based on new analysis) for new sports tourism service 22535 13211 10508 7243 1535 1644 1483 $2,000 $2,966,000 7% 24% 28% 41% Grand total of revenue budget: Costs budget Cost of sales (by sales department) Note: Calc. Cost % x Sales revenue Active sportswear Footwear Accessories Licenced merchandise Sports equipment Equipment repairs Estimated Cost of Sales (COS) S: Active sportswear Footwear Accessories Licenced merchandise Sports equipment Equipment repairs Total cost of sales (all departments) Sports tourism costs (percentage of budgeted sales) Total cost of sales: Sports Tourism: Gross profit by sales department: Active sportswear Footwear Accessories Licenced merchandise Sports equipment Equipment repairs Sports tourism Gross profit from sales: Other costs attributable AND CONTROLLABLE by Profit Centre Manager: Returned merchandise written off (due to incorrect sales advice or fitting) {Percentage of sales returned shown) Active sportswear Footwear Accessories Licenced merchandise Sports equipment 46% 51% 33% 70% 73% 26% I: 45% E E 3% 2% 2% 0% 2% Calculate cost of returned sales Note: These returned goods are due to poor sales advice given, not other customer returns Active sportswea r Footwea r Accessories licenced merchandise Sports equipment Total cost of returned sales due to poor sales advice: |:] Other controllable costs: Commissions paid to staff: Sales commissions paid to staff (% of GP on items} 10% Sales commissions paid: :I Rostered staff costs: (Note all amounts are at LAST YEAR'S Rate) See notes on expected wage and salary increases this year Number offulltime sales staff 10 Average full time staff wage per week $72,241 Total full time staff wage costs Number of casual sales staff hours 2438 Average casual hourly rate $33.00 Total annual casual staff costs Other staff costs: Management salaries $99,615 Administrative staff wages and salaries $133,271 Total staff wage and salary costs: Staff training (96 Sales) 4% Staff training (5) Local advertising and marketing (96 Sales) 5% Total local advertising and marketing 5 Total costs controllable by local manager: Gross profit controllable by local manager: Fixed costs attributable to local business unit: NOTE: All costs are shown at LAST YEAR's RATES - see notes on expected inflation of these costs Cleaning and general maintenance $22,589 Utilities {Electricity/Gas etc} $35,176 Sundry business costs $16,773 Other fixed costs controlled by others: NOTE: The all other fixed costs shown below are calculated at the expected costs and do NOT have to be adjusted for inflation Liability insurance Rental costs Security services IT Support and systems Total 'local' fixed costs controlled by others Fixed costs allocated to business unit by 'Head office': NOTE: The Head Office costs are imposed on the business unit as a percentage of sales revenue. Percentage shown is to be used to calculate the amount allocated National marketing and advertising budget costs Head office administration charge (% Sales} Total Head Office cost allocations: Net prot for this profit centre (Business Unit) Additional information NOTE: The following inflation expectations should be applied (where indicated) on the 'last year' amounts given above to budget for the coming year. Increase in all cleaning and maintenance costs Increase in utilities costs Increase in sundry business costs Wages are expected to increase as follows: a} Management salaries b} Administrative salaries c} Increase for all sales staff {full time and casual} $180,576 $451,441 $90,288 $270,865 4% 4% 6.0% 20.0% 6.0% 5.0% 6.0% 6.0%