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Required: Suppose that Gene is considering three sales scenarios as follows: Prepare a revenue budget for the Sales Division for the coming year for each
Required:
Suppose that Gene is considering three sales scenarios as follows:
Prepare a revenue budget for the Sales Division for the coming year for each scenario.
Olympus, Inc.
Revenue Budget
For the Coming Year
Prepare a flexible expense budget for the Sales Division for the three scenarios above.
Olympus, Inc.
Flexible Expense Budget
For the Coming YearOlympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are for the Sleepeze, for the Plushette, and for the Ultima. Gene Dixon, vice president of sales, has provided the following information:
Salaries for his office including himself at $ a marketing research assistant at $ and an administrative assistant at $ are budgeted for $ next year.
Depreciation on the offices and equipment is $ per year.
Office supplies and other expenses total $ per year.
Advertising has been steady at $ per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this highend mattress. Gene believes the company should spend percent of firstyear Ultima sales for a print and television campaign.
Commissions on the Sleepeze and Plushette lines are percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores.
Last year, shipping for the Sleepeze and Plushette lines averaged $ per unit sold. Gene expects the Ultima line to ship for $ per unit sold since this model features a larger mattress.
Required:
Question Content Area
Suppose that Gene is considering three sales scenarios as follows:
Pessimistic Expected Optimistic
Price Quantity Price Quantity Price Quantity
Sleepeze $ $ $
Plushette
Ultima
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 cebffb
$fill in the blank cebffb
$fill in the blank cebffb
Plushette fill in the blank cebffb
fill in the blank cebffb
fill in the blank cebffb
Ultima fill in the blank cebffb
fill in the blank cebffb
fill in the blank cebffb
Total sales $fill in the blank cebffb
$fill in the blank cebffb
$fill in the blank cebffb
Question Content Area
Prepare a flexible expense budget for the Sales Division for the three scenarios above.
Olympus, Inc.
Flexible Expense Budget
For the Coming Year
Pessimistic Expected Optimistic
Salaries $fill in the blank effd
$fill in the blank effd
$fill in the blank effd
Depreciation fill in the blank effd
fill in the blank effd
fill in the blank effd
Office supplies and other fill in the blank effd
fill in the blank effd
fill in the blank effd
Advertising:
Sleepeze and Plushette fill in the blank effd
fill in the blank effd
fill in the blank effd
Ultima fill in the blank effd
fill in the blank effd
fill in the blank effd
Commissions fill in the blank effd
fill in the blank effd
fill in the blank effd
Shipping:
Sleepeze fill in the blank effd
fill in the blank effd
fill in the blank effd
Plushette fill in the blank effd
fill in the blank effd
fill in the blank effd
Ultima fill in the blank effd
fill in the blank effd
fill in the blank effd
Total $fill in the blank effd
$fill in the blank effd
$fill in the blank effd
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