Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,340 for the Sleepeze, 11,860 for the Plushette, and 4,540 for the Ultima. Gene Dixon, vice president of sales, has provided the following information:

1. Salaries for his office (including himself at $65,050, a marketing research assistant at $39,650, and an administrative assistant at $27,200) are budgeted for $131,900 next year.
2. Depreciation on the offices and equipment is $19,650 per year.
3. Office supplies and other expenses total $21,800 per year.
4. Advertising has been steady at $19,550 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.
5. 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.
6. Last year, shipping for the Sleepeze and Plushette lines averaged $45 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	$185	12,080		$200	15,340		$200	17,860
Plushette	299	9,570		344	11,860		353	14,120
Ultima	880	1,980		1,010	4,540		1,200	4,540

Prepare a revenue budget for the Sales Division for the coming year for each scenario.

Olympus, Inc.
Revenue Budget
For the Coming Year
	Pessimistic	Expected	Optimistic
Sleepeze	$fill in the blank 514315fe805a04a_1	$fill in the blank 514315fe805a04a_2	$fill in the blank 514315fe805a04a_3
Plushette	fill in the blank 514315fe805a04a_4	fill in the blank 514315fe805a04a_5	fill in the blank 514315fe805a04a_6
Ultima	fill in the blank 514315fe805a04a_7	fill in the blank 514315fe805a04a_8	fill in the blank 514315fe805a04a_9
Total sales	$fill in the blank 514315fe805a04a_10	$fill in the blank 514315fe805a04a_11	$fill in the blank 514315fe805a04a_12

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	$fill in the blank b54b5104f036011_1	$fill in the blank b54b5104f036011_2	$fill in the blank b54b5104f036011_3
Depreciation	fill in the blank b54b5104f036011_4	fill in the blank b54b5104f036011_5	fill in the blank b54b5104f036011_6
Office supplies and other	fill in the blank b54b5104f036011_7	fill in the blank b54b5104f036011_8	fill in the blank b54b5104f036011_9
Advertising:
Sleepeze and Plushette	fill in the blank b54b5104f036011_10	fill in the blank b54b5104f036011_11	fill in the blank b54b5104f036011_12
Ultima	fill in the blank b54b5104f036011_13	fill in the blank b54b5104f036011_14	fill in the blank b54b5104f036011_15
Commissions	fill in the blank b54b5104f036011_16	fill in the blank b54b5104f036011_17	fill in the blank b54b5104f036011_18
Shipping:
Sleepeze	fill in the blank b54b5104f036011_19	fill in the blank b54b5104f036011_20	fill in the blank b54b5104f036011_21
Plushette	fill in the blank b54b5104f036011_22	fill in the blank b54b5104f036011_23	fill in the blank b54b5104f036011_24
Ultima	fill in the blank b54b5104f036011_25	fill in the blank b54b5104f036011_26	fill in the blank b54b5104f036011_27
Total	$fill in the blank b54b5104f036011_28	$fill in the blank b54b5104f036011_29	$fill in the blank b54b5104f036011_30