eBook Show Me How Sales Forecast and Flexible Budget Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,570 for the Sleepeze, 12.530 for the Plushette, and 4,750 for the Ultima. Gene Dixon, vice president of sales, has provided the following information: a. Salaries for his office (including himself at $62,050, a marketing research assistant at $40,450, and an administrative assistant at $22,950) are budgeted for $125,450 next year b. Depreciation on the offices and equipment is $22,250 per year. c. Office supplies and other expenses total $18,700 per year. d. Advertising has been steady at $19,800 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 10 percent of first-year Ultima sales for a print and television campaign. e. Commissions on the Sleepeze and Plushette lines are 3 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores. Last year, shipping for the Sleepeze and Plushette lines averaged $50 per unit sold. Gene expects the Ultima line to ship for $70 per unit sold since this model features a larger mattress. Required: 1. Suppose that Gene is considering three sales scenarios as follows: Pessimistic Expected Optimistic Price Quantity Price Quantity Price Quantity Sleepeze $186 12,170 $205 15,570 $206 18,020 Plushette 296 10,380 349 12.530 360 14,060 Ultima 860 2,260 930 4,750 1,120 4,750 Prepare a revenue budget for the Sales Division for the coming year for each scenario. Olympus, Inc. Revenue Budget For the Coming Year Check My Work 1 more Check My Work uses remaining Pessimistic Price Quantity 1. Suppose that Gene is considering three sales scenarios as follows: Expected Optimistic Price Quantity Price Quantity Sleepeze $186 12,170 Plushette 296 10,380 $206 15,570 349 12,530 $206 18,020 360 14,060 Ultima 860 2,260 930 4,750 1,120 4,750 V Prepare a revenue budget for the Sales Division for the coming year for each scenario. Olympus, Inc. Sleepeze Plushette Revenue Budget For the Coming Year Pessimistic Expected Optimistic Ultima Total sales 2. Prepare a flexible expense budget for the Sales Division for the three scenarios above. If required, round answers to the nearest dollar. Olympus, Inc. Flexible Expense Budget For the Coming Year Sleepeze Plushette Ultima Total sales 2. Prepare a flexible expense budget for the Sales Division for the three scenarios above. If required, round answers to the nearest dollar. Olympus, Inc. Flexible Expense Budget For the Coming Year Pessimistic Expected Optimistic Salaries Depreciation Office supplies and other Advertising: Sleepeze and Plushette Ultima Commissions Shipping: Total Sleepeze Plushette Ultima 1000 000 0000 0000 000 000 000 000 0000