In this section you should discuss how many sales you need to make to achieve BEP, how many units are sold, and what your profit contribution will be
1. budgeted sales Printing paper 300 Stapler 500 Ballpoint pen 830 Notebook 400 3ORM 12RM 4RM 9RM Expected sold Price per unit Total sales 2. budgeted production 9000RM 600ORM 3320RM 3600RM Quarter 1 Quarter 3 Quarter 2 2005 Quarter 4 3000 2100 2306 1000 1200 1800 Units sales +Desired end inventory Total needed - Beginning inventory Unite to produce 1800 4106 3100 3205 4800 1000 1000 1200 1800 2100 2205 2906 3000 3. cash budget Cash inflow First Q Second Q Third Q Fourth Q Beginning cash balance Sale of products Total inflow 20000 9000 11000 29000 11000 10000 13000 6000 Cash expenditures Processing Marketing Capital purchases Total expenditures Net cash flow 8000 1300 9000 18300 1200 2000 3200 2000 3000 9000 2000 10700 7800 1000 11000 Quarter 1 2100 29 60900 Quarter 2 2005 29 58145 Quarter 3 2306 29 66874 Quarter 4 3000 29 87000 4. Selling administrative budget Quarter Unite to be sold Variable expense per unit Total Variable expense Fixed selling and Administrative expense Salaries Utilities Advertising Total Fixed Expense Total Expense Estimated 4000 150 4000 150 4000 300 4000 150 120 4270 110 200 4260 120 4270 62415 4700 65160 71144 91700 5. Budgeted income Sales COGS Gross profit Income from operating Interest and other income Net income Total Budgeted income 87680 91700 -4020 10000 1200 7180 6. budgeted balance sheet ASSETS Current Assets: Cash Account receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets 49590 91000 42600 41160 224350 Liabilities Current Liabilities: Account payable 25500 Equity 100000 98850 Common equity Retained Earning Total stockholder equity Total Liabilities and equity 198850 224350 1. budgeted sales Printing paper 300 Stapler 500 Ballpoint pen 830 Notebook 400 3ORM 12RM 4RM 9RM Expected sold Price per unit Total sales 2. budgeted production 9000RM 600ORM 3320RM 3600RM Quarter 1 Quarter 3 Quarter 2 2005 Quarter 4 3000 2100 2306 1000 1200 1800 Units sales +Desired end inventory Total needed - Beginning inventory Unite to produce 1800 4106 3100 3205 4800 1000 1000 1200 1800 2100 2205 2906 3000 3. cash budget Cash inflow First Q Second Q Third Q Fourth Q Beginning cash balance Sale of products Total inflow 20000 9000 11000 29000 11000 10000 13000 6000 Cash expenditures Processing Marketing Capital purchases Total expenditures Net cash flow 8000 1300 9000 18300 1200 2000 3200 2000 3000 9000 2000 10700 7800 1000 11000 Quarter 1 2100 29 60900 Quarter 2 2005 29 58145 Quarter 3 2306 29 66874 Quarter 4 3000 29 87000 4. Selling administrative budget Quarter Unite to be sold Variable expense per unit Total Variable expense Fixed selling and Administrative expense Salaries Utilities Advertising Total Fixed Expense Total Expense Estimated 4000 150 4000 150 4000 300 4000 150 120 4270 110 200 4260 120 4270 62415 4700 65160 71144 91700 5. Budgeted income Sales COGS Gross profit Income from operating Interest and other income Net income Total Budgeted income 87680 91700 -4020 10000 1200 7180 6. budgeted balance sheet ASSETS Current Assets: Cash Account receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets 49590 91000 42600 41160 224350 Liabilities Current Liabilities: Account payable 25500 Equity 100000 98850 Common equity Retained Earning Total stockholder equity Total Liabilities and equity 198850 224350
