Sales Budget

Assume that Stillwater Designs produces two automotive subwoofers: S$12$L$7$ and S$12$L$5.$ The S$12$L$7$ sells for $$613,$ and the S$12$L$5$ sells for $$387.$ Projected sales $($number of speakers$)$ for the coming five quarters are as follows:

Line Item Description S$12$L$7$ S$12$L$5$

First quarter, $20$Y$18001,300$

Second quarter, $20$Y$12,2001,400$

Third quarter, $20$Y$15,6005,300$

Fourth quarter, $20$Y$14,6003,900$

First quarter, $20$Y$29001,200$

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

Required:

Question Content Area

$1.$ Prepare a sales budget for each quarter of $20$Y$1$ 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 $31,20$Y$1$

Line Item Description $1$st Qtr$.2$nd Qtr$.4$th Qtr$.$ Year

S$12$L$7$:

Units Units

Units

Units

Units

Units

Price $Price

$Price

$Price

$Price

$Price

Sales $Sales

$Sales

$Sales

$Sales

$Sales

S$12$L$5$:

Units Units

Units

Units

Units

Units

Price $Price

$Price

$Price

$Price

$Price

Sales $fill in the blank b$6$d$68301900$dfab$\_26$

$fill in the blank b$6$d$68301900$dfab$\_27$

$fill in the blank b$6$d$68301900$dfab$\_28$

$fill in the blank b$6$d$68301900$dfab$\_29$

$fill in the blank b$6$d$68301900$dfab$\_30$

Total sales $Total sales

$Total sales

$Total sales

$Total sales

$Total sales

Question Content Area

$2.$ 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