Cash budgeting - Australian Super Sports Limited Group 7 Number of sales by sales department: Active sportswear 23838 Footwear 18874 Accessories 10860 Licenced merchandise 3512 Sports equipment 2414 Equipment repairs 3219 Average sales spend per sale: Active sportswear $80 Footwear $200 Accessories $80 Licenced merchandise $200 Sports equipment $90 Equipment repairs $150 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 1556 Average predicted sales value (per sale) $700 Optimistic sales revenue from service $1,089,200 Revised analytics for sports tourism Probability of achieving forecast bootcamp enrolments Probability of 25% forecast 9% Probability of 50% forecast 13% Probability of 75% forecast 26% Probability of 100% of forecast 52% Total overall probability of forecast? Total likely forecast (based on new analysis) for new sports tourism service Grand total of revenue budget: Costs budget Cost of sales (by sales department) Note: Calc. Cost % x Sales revenue Active sportswear 47% Footwear 46% Accessories 37% Licenced merchandise 71% Sports equipment 72% Equipment repairs 32% Estimated Cost of Sales (COS) $: Active sportswear Footwear Accessories Licenced merchandise Sports equipment Equipment repairs Total cost of sales (all departments) Sports tourism costs (percentage of budgeted sales) 52% 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 3% Footwear 2% Accessories 2% Licenced merchandise 1% Sports equipment 2% Calculate cost of returned sales Note: These returned goods are due to poor sales advice given, not other customer returns Active sportswear Footwear 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) 12% Sales commissions paid: Rostered staff costs: (Note all amounts are at LAST YEAR'S Rate) See notes on expected wage and salary increases this year Number of full time sales staff 8 Average full time staff wage per week $66,186 Total full time staff wage costs Number of casual sales staff hours 2373 Average casual hourly rate $30.00 Total annual casual staff costs Other staff costs: Management salaries $102,448 Administrative staff wages and salaries $151,680 Total staff wage and salary costs: Staff training (% Sales) 4% Staff training ($) Local advertising and marketing (% Sales) 5% Total local advertising and marketing $ 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 $23,963 Utilities (Electricity/Gas etc) $36,968 Sundry business costs $15,557 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 $182,639 Rental costs $456,598 Security services $182,639 IT Support and systems $182,639 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 4% Head office administration charge (% Sales) 4% Total Head Office cost allocations: Net profit 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 5.0% Increase in utilities costs 17.0% Increase in sundry business costs 5.0% Wages are expected to increase as follows: a) Management salaries 5.0% b) Administrative salaries 6.0% c) Increase for all sales staff (full time and casual) 6.0%