Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 Women's Men's Total
Winter quarter 200 200 100 500
Spring quarter 200 250 200 650
Summer quarter 400 300 200 900
Fall quarter 200 250 100 550
Total 1,000 1,000 600 2,600

Childrens T-shirts sell for $12 each, womens sell for $16, and mens sell for $17.

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 childrens shirts are 275 [1,000 X 1.10/4].)

Summer Fun T-Shirt Shop Sales Budget (Average) Quarterly for 2014 Quarter
Winter Spring Summer Fall Year Totals
Units:
Children's Answer

Answer

Answer

Answer

Answer

Women's Answer

Answer

Answer

Answer

Answer

Men's Answer

Answer

Answer

Answer

Answer

Dollars:
Children's $Answer

$Answer

$Answer

$Answer

$Answer

Women's Answer

Answer

Answer

Answer

Answer

Men's Answer

Answer

Answer

Answer

Answer

Totals $Answer

$Answer

$Answer

$Answer

$Answer

b. Actual quarterly sales. (Hint: Winter quarter childrens shirts are 220 [200 X 1.10].)

Summer Fun T-Shirt Shop Sales Budget (Average) Quarterly for 2014 Quarter
Winter Spring Summer Fall Year Totals
Units:
Children's Answer

Answer

Answer

Answer

Answer

Women's Answer

Answer

Answer

Answer

Answer

Men's Answer

Answer

Answer

Answer

Answer

Dollars:
Children's $Answer

$Answer

$Answer

$Answer

$Answer

Women's Answer

Answer

Answer

Answer

Answer

Men's Answer

Answer

Answer

Answer

Answer

Totals $Answer

$Answer

$Answer

$Answer

$Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditor Essentials 100 Concepts Tips Tools And Techniques For Success

Authors: Hernan Murdock

1st Edition

1138036919, 978-1138036918

More Books

Students also viewed these Accounting questions