Sales Budget

Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $670, and the S12L5 sells for $423. Projected sales (number of speakers) for the coming five quarters are as follows:

	S12L7	S12L5
First quarter, 20Y1	800	1,300
Second quarter, 20Y1	2,200	1,400
Third quarter, 20Y1	5,600	5,300
Fourth quarter, 20Y1	4,600	3,900
First quarter, 20Y2	900	1,200

The vice president of sales believes that the projected sales are realistic and can be achieved by the company.

Required:

Question Content Area

Prepare a sales budget for each quarter of 20Y1 and for the year in total. Show sales by product and in total for each time period. Do not include a multiplication symbol as part of your answer.

Stillwater Designs Sales Budget For the Year Ended December 31, 20Y1

	1st Qtr.	2nd Qtr.	3rd Qtr.	4th Qtr.	Year
S12L7:
Units	fill in the blank 6cfe74fb7073068_1	fill in the blank 6cfe74fb7073068_2	fill in the blank 6cfe74fb7073068_3	fill in the blank 6cfe74fb7073068_4	fill in the blank 6cfe74fb7073068_5
Price	$fill in the blank 6cfe74fb7073068_6	$fill in the blank 6cfe74fb7073068_7	$fill in the blank 6cfe74fb7073068_8	$fill in the blank 6cfe74fb7073068_9	$fill in the blank 6cfe74fb7073068_10
Sales	$fill in the blank 6cfe74fb7073068_11	$fill in the blank 6cfe74fb7073068_12	$fill in the blank 6cfe74fb7073068_13	$fill in the blank 6cfe74fb7073068_14	$fill in the blank 6cfe74fb7073068_15
S12L5:
Units	fill in the blank 6cfe74fb7073068_16	fill in the blank 6cfe74fb7073068_17	fill in the blank 6cfe74fb7073068_18	fill in the blank 6cfe74fb7073068_19	fill in the blank 6cfe74fb7073068_20
Price	$fill in the blank 6cfe74fb7073068_21	$fill in the blank 6cfe74fb7073068_22	$fill in the blank 6cfe74fb7073068_23	$fill in the blank 6cfe74fb7073068_24	$fill in the blank 6cfe74fb7073068_25
Sales	$fill in the blank 6cfe74fb7073068_26	$fill in the blank 6cfe74fb7073068_27	$fill in the blank 6cfe74fb7073068_28	$fill in the blank 6cfe74fb7073068_29	$fill in the blank 6cfe74fb7073068_30
Total sales	$fill in the blank 6cfe74fb7073068_31	$fill in the blank 6cfe74fb7073068_32	$fill in the blank 6cfe74fb7073068_33	$fill in the blank 6cfe74fb7073068_34	$fill in the blank 6cfe74fb7073068_35

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How will Stillwater Designs use this sales budget?

1. Stillwater Designs will use the sales budget in planning as the basis for the production budget.
2. The company can also compare actual sales against the budget to see if expectations were achieved.
3. Both 1 and 2
4. None of the above