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 T-shirts sell for $11 each, women's sell for $15, and men's sell for $16. 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].) c. Suggest advantages of each method. Which one is not an advantage to preparing a sales budget using average quarterly sales. Zeduces the possibility of being out of stock in most quarters Minimizes the investment in inventory during low-sales quarters smoothes the investment in inventory throughout the year implifies the purchasing of inventory 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 T-shirts sell for $11 each, women's sell for $15, and men's sell for $16. 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].) c. Suggest advantages of each method. Which one is not an advantage to preparing a sales budget using average quarterly sales. Zeduces the possibility of being out of stock in most quarters Minimizes the investment in inventory during low-sales quarters smoothes the investment in inventory throughout the year implifies the purchasing of inventory