1. NittanyCompanysellsthreeproductswiththefollowingseasonalsalespattern:ProductsQuarterABC140%30%10%230%20%40%320%20%40%410%30%10%Theannualsalesbudgetshowsforecastsforthedifferentproductsandtheirexpectedsellingpriceperunitasfollows:ProductUnitsSellingPriceA50,000$8B125,00020C62,50012Required:Prepareasalesbudget,inunitsanddollars,byquartersforthecompanyforthecomingyear.

I need help with question 2 and 3 in the attached document. Thank you.

Week 5 Chapter 6 1. Describe the benefits to an organization of preparing an operating budget. Answer: 2. Nittany Company sells three products with the following seasonal sales pattern: Quarter 1 2 3 4 A 40% 30% 20% 10% Products B 30% 20% 20% 30% C 10% 40% 40% 10% The annual sales budget shows forecasts for the different products and their expected selling price per unit as follows: Product A B C Units 50,000 125,000 62,500 Selling Price $8 20 12 Required: Prepare a sales budget, in units and dollars, by quarters for the company for the coming year. Answer: 3. Christy Enterprises reports the year-end information from 2011 as follows: Sales (100,000 units) $500,000 Less: Cost of goods sold 300,000 Gross profit 200,000 Operating expenses (includes $20,000 of Depreciation) 120,000 Net income $ 80,000 Christy is developing the 2012 budget. In 2012 the company would like to increase selling prices by 10%, and as a result expects a decrease in sales volume of 5%. Cost of goods sold as a percentage of sales is expected to increase to 62%. Other than depreciation, all operating costs are variable. Required: Prepare a budgeted income statement for 2012. Answer: Chapter 7 4. Explain the difference between a static budget and a flexible budget. Explain what is meant by a static budget variance and a flexible budget variance. Answer: 5. The textbook discusses three levels of variances, Level 0, Level 1, Level 2, and Level 3. Briefly explain the meaning of each of those levels and provide an example of a variance at each of those levels