1. Jumanji Inc. is a retailer of cellphone business and have 3 small stores in the GTA. The stores are open Tue. to Sun. from 11am to 7pm and currently the company only sells 2 models of cellphones; CANUCK1 & CANUCK2. The phones are designed, developed and manufactured in Canada. Given the various issues with cell phone security the company is hoping that a Canadian product will have significant appeal to the local market. It is now June 30^th 2020 and the company is preparing the 2021 operating budget and have noted the following information.

Assume that there are precisely 26 weeks included in the 6 months of operation to the end of June, 2020 and that March, June, September and December have 5 weeks in each month and all other months have 4 weeks. Total of 52 weeks in a year.

The following relates to CANUCK1..

From January to April there were 15 phones sold at each store each week. May sales were

40 a week at each store while June sales were 25 a week at each store. Looking forward

July and August are expected to be much like June. September through November will see

sales of 15 phones per week per store and 50 per week in December. Jumanji is concerned

that a new local competitor has recently entered the market place with a similar Canadian

made phone and therefore expect that these numbers are likely to decline by 20% in 2021.

The phone sells for $400 each in 2020 and the company has decided to keep the same price in

2021. Jumanjis all in cost to buy the phone is $240 in 2020 and these costs are expected to

Increase by 5% for 2021.

The following relates to CANUCK2.

35 phones are sold per week at each store and this is expected to be steady through year end.

The price is $450 and there is an all in cost of $220 per phone. Next year sales are expected to be

40 each week at each store all else is expected to be the same.

The following relates to the companys operating costs

Currently all employees are paid $17.00 per hour for the duration of the stores operating

hours. There are two staff per store at all times except during July and August when a

summer student is expected to be added at each store. The wages are forecasted to

increase to $18/hour for 2021.

The rent is $5,000/month per location with no increase expected in 2021.

Company advertising costs are $1,100/week. In 2020 an extra $5,000 was spent in Jan. for a

Billboard (i.e. a sign). A 4% increase in advertising costs is expected next year. No

Billboard in 2021. Amortization costs are $2,600 per month. No capital expenditures are

planned for the next two years.

Using budget techniques of simple projection and specific projection as appropriate,

complete the attached budget worksheet including

(A) a projection of year to date results for the twelve months ending December, 2020

(B) a one month budget for the four weeks of January, 2021

3. a budget for the twelve months ending December, 2021