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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 15,000 for the Sleepeze, 12,000 for the Plushette, and 5,000 for the Ultima. Gene Dixon, vice president of sales, has provided the following information:
Salaries for his office (including himself at $65,000, a marketing research assistant at $40,000, and an administrative assistant at $25,000) are budgeted for $130,000 next year.
Depreciation on the offices and equipment is $20,000 per year.
Office supplies and other expenses total $21,000 per year.
Advertising has been steady at $20,000 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 15 percent of first-year Ultima sales for a print and television campaign.
Commissions on the Sleepeze and Plushette lines are 5 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 $50 per unit sold. Gene expects the Ultima line to ship for $75 per unit sold since this model features a larger mattress.
Required:
Question Content Area
1. Suppose that Gene is considering three sales scenarios as follows:
Pessimistic Expected Optimistic
Price Quantity Price Quantity Price Quantity
Sleepeze $18012,500 $20015,000 $20018,000
Plushette 30010,00035012,00036014,000
Ultima 9002,0001,0005,0001,2005,000
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 c5e94b088ffb024_1
$fill in the blank c5e94b088ffb024_2
$fill in the blank c5e94b088ffb024_3
Plushette fill in the blank c5e94b088ffb024_4
fill in the blank c5e94b088ffb024_5
fill in the blank c5e94b088ffb024_6
Ultima fill in the blank c5e94b088ffb024_7
fill in the blank c5e94b088ffb024_8
fill in the blank c5e94b088ffb024_9
Total sales $fill in the blank c5e94b088ffb024_10
$fill in the blank c5e94b088ffb024_11
$fill in the blank c5e94b088ffb024_12
Question Content Area
2. 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 1370e0f96077fd7_1
$fill in the blank 1370e0f96077fd7_2
$fill in the blank 1370e0f96077fd7_3
Depreciation fill in the blank 1370e0f96077fd7_4
fill in the blank 1370e0f96077fd7_5
fill in the blank 1370e0f96077fd7_6
Office supplies and other fill in the blank 1370e0f96077fd7_7
fill in the blank 1370e0f96077fd7_8
fill in the blank 1370e0f96077fd7_9
Advertising:
Sleepeze and Plushette fill in the blank 1370e0f96077fd7_10
fill in the blank 1370e0f96077fd7_11
fill in the blank 1370e0f96077fd7_12
Ultima fill in the blank 1370e0f96077fd7_13
fill in the blank 1370e0f96077fd7_14
fill in the blank 1370e0f96077fd7_15
Commissions fill in the blank 1370e0f96077fd7_16
fill in the blank 1370e0f96077fd7_17
fill in the blank 1370e0f96077fd7_18
Shipping:
Sleepeze fill in the blank 1370e0f96077fd7_19
fill in the blank 1370e0f96077fd7_20
fill in the blank 1370e0f96077fd7_21
Plushette fill in the blank 1370e0f96077fd7_22
fill in the blank 1370e0f96077fd7_23
fill in the blank 1370e0f96077fd7_24
Ultima fill in the blank 1370e0f96077fd7_25
fill in the blank 1370e0f96077fd7_26
fill in the blank 1370e0f96077fd7_27
Total $fill in the blank 1370e0f96077fd7_28
$fill in the blank 1370e0f96077fd7_29
$fill in the blank 1370e0f96077fd7_30
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