Sales Forecast and Flexible Budget Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,260 for the Sleepeze, 12,580 for the Plushette, and 4,880 for the Ultima. Gene Dixon, vice president of sales, has provided the following information: a. Salaries for his office (incdluding himself at $65,250, a marketing research assistant at $36,450, and an administrative assistant at $25,550) are budgeted for $127,250 next year. b. Depreciation on the offices and equipment is $22,350 per year. c. Office supplies and other expenses total $22,200 per year. d. Advertising has been steady at $20,800 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 20 percent of first-year Ultima sales for a print and television campaign retail stores. model features a larger mattress. e. Commissions on the Sleepeze and Plushette lines are 4 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to f. Last year, shipping for the Sleepeze and Plushette lines averaged $50 per unit sold. Gene expects the Ultima line to ship for $70 per unit sold since this Required: 1. Suppose that Gene is considering three sales scenarios as follows: Pessimistic Expected Optimistic Price Quantity Price Quantity Price Quantity Sleepeze $183 12,890 $203 15,260 $203 18,410 Plushette 298 10,340 345 12,580 358 14,030 910 1,950 1,030 4,880 1250 4,880 Ultima ach.cconso Check My Work 3 more Check My Work uses remaining PreviouS Next -12 PM 06/03/2019 Prepare a revenue budget for the Sales Division for the coming year for each scenario. Olympus, Inc. Revenue Budget Pessimistic Expected Optimistic Sleepeze Ultima Total sales 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 Optimistic Pessimistic Expected Salaries Depreciation Office supplies and other Advertising Sleepeze and Plushette ulzima Prev Check Hy Work 3 more Check My Work uses remaining ENG 813 P Print item Uloma Total sales 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 Depreciation Office supplies and other Sleepeze and Plushette Utima Shipping: Sleepeze Plushette Ultima Tota Check My Work 3 more Check My Work uses remaning 813 PM
