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Problem 5-31 (Part Level Submission) Strum Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional

Problem 5-31 (Part Level Submission)

Strum Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Claire Strum, the companys sales manager, prepared the following sales forecast for 2015. The forecasted sales prices include a 5 percent increase in the acoustic guitar price and a 10 percent increase in the electric guitar price, to cover anticipated increases in raw materials prices.

Sales Price

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Acoustic guitar sales

$1,450

400

570

310

620

Electric guitar sales

$2,600

260

120

170

170

(a)

Prepare Strums sales budget for 2015.

Sales Budget

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Annual

Acoustic:

Budgeted units sold Budgeted revenue Budgeted sales price

Budgeted revenue Budgeted units sold Budgeted sales price

$

$

$

$

$

Budgeted sales price Budgeted units sold Budgeted revenue

$

$

$

$

$

Electric:

Budgeted revenue Budgeted units sold Budgeted sales price

Budgeted units sold Budgeted sales price Budgeted revenue

$

$

$

$

$

Budgeted units sold Budgeted revenue Budgeted sales price

$

$

$

$

$

Total revenue

$

$

$

$

$

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