Instructions:

Problem:

BUNS BAKERY- Cookies only Please read these instructions before beginning your work. You may work alone or with a partner. If you work with a partner, turn in one solution with both names on it. Prepare a master budget for cookies only Use the balance sheet in the Excel file. DO NOT use the balance sheet in the IMA case. TABLE 1- PREPARE THE SALES BUDGET FOR YEAR 2 One dozen one unit for sales. Your starting point for Year 2 cookie sales is Q4 of Year 1. The unit volume for Q4 of Year 1 is 65,000 dozen cookies. Plan the unit volume for Year 2 as follows: Q1 unit volume is 20% lower than Q4 of Year 1, Q1 unit volume is 65,000 x 80% or 52,000 Q2 unit volume is 5% more than Q1 of Year 2, Q2 unit volume is 52,000 x 1.05 or 54,600 Q3 unit volume is 5% more than Q2 of Year 2, Q3 unit volume is 54,600 x 1.05 or 57,330 Q4 unit volume is 20% more than Q3 of Year 2, Q4 unit volume is 57,330 x 1.20 or 68,796 Q1 unit volume for Year 3 grows based on Q3 volume from Year 2. it is 57,330 x 1.05(Q3 growth) x 1.05 (Q4 growth) or 63,206 The selling price per unit (dozen) is $5.25 for Year 2. Assume that the selling price does not change for Year 3