Question / Not complete Marked out of 1.25 Flag question Sales Budget Summer Fun T-Shirt Shop has very seasonal sales. For 2014, management is trying to decide whether to establish a sales budget based on average sales or on sales estimated by quarter. The unit sales for 2014 are expected to be 10 percent higher than 2013 sales. Unit shirt sales by quarter for 2013 were as follows: Children's Women's Men's Total Winter quarter 200 200 100 500 Spring quarter 200 250 200 650 Summer quarter 400 300 200 900 Fall quarter 200 100 550 Total 1,000 600 2,600 250 1,000 Children's T-shirts sell for $6 each, women's sell for $10, and men's sell for $11. Assuming a 10 percent increase in sales, prepare a sales budget for each quarter of 2014 using the following: a. Average quarterly sales. (Hint: Winter quarter children's shirts are 275[1,000 X 1.10/4].) Summer Fun T-Shirt Shop Sales Budget Quarterly for 2014 Winter Spring Summer Fall Year Totals Units: Children's 275 275 0 0 0 Women's 0 0 Men's 0 0 0 Dollars: Children's $ 0 $ 0$ 0 $ 0 $ 0 Women's 0 0 0 0 0 Men's 0 0 0 0 0 Totals $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 b. Actual quarterly sales. (Hint: Winter quarter children's shirts are 220 [200 X 1.10].) 0 0 0 0 0 b. Actual quarterly sales. (Hint: Winter quarter children's shirts are 220 [200 X 1.10].) Summer Fun T-Shirt Shop Sales Budget Quarterly for 2014 Winter Spring Summer Fall Year Totals Units: Children's Women's Men's Dollars: Children's $ 0 $ 0 $ 0 $ 0 $ Women's Men's Totals $ 0 $ 0 $ 0 $ 0 0 O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 C. Suggest advantages of each method. Which one is not an advantage to preparing a sales budget using average quarterly sales. OReduces the possibility of being out of stock in most quarters Minimizes the investment in inventory during low-sales quarters OSmoothes the investment in inventory throughout the year OSimplifies the purchasing of inventory