Sales Forecast and Budget Audio 2 Go, Inc , manufactures MP3 players Models A 1, A 2, and A 3 are small and light They are attached to armbands and use flash memory Models A 4 and A 5 are somewhat larger and use a built in hard drive they can be put into fanny packs for use while working out It is now early January, and Audio 2 Gos budgeting team is finalizing the sales budget for this year Sales in units and dollars for last year were as follows Model Number Sold Price Revenue A 1 21,000 $ 70 $1,470,000 A 2 33,000 85 2,805,000 A 3 58,000 100 5,800,000 A 4 15,000 150 2,250,000 A 5 4,500 250 1,125,000 $13,450,000 In looking over the last year's sales figures, Audio 2 Gos sales budgeting team recalled the following Model A 1 costs were rising faster than the price could rise Preparatory to phasing out this model, Audio 2 Go, Inc , planned to slash advertising for this model and raise its price by 20 percent The number of units of Model A 1 to be sold was forecast to be 50 percent of last year's units Model A 5 was introduced on November 1 of last year It contains a built in 20 GB hard drive and can be synchronized with several popular music software programs Audio 2 Go brought out this model to match competitors audio players, but the price is so much higher than other Audio 2 Go products, that sales have been disappointing The company plans to discontinue this model on June 30 of this year, and thinks that monthly sales will remain at last year's level if the sales price remains unchanged Audio 2 Go plans to introduce Model A 6 on July 1 of this year It will be a high end player that will be lighter and more versatile than Model A 5 (which it will replace) The target price for this model is $180 unit sales are estimated to equal 3,000 per month A competitor has announced plans to introduce an improved version of Model A 3 Audio 2 Go believes that the Model A 3 price must be cut 20 percent to maintain unit sales at last year's level It was assumed that unit sales of all other models would increase by 10 percent, prices remaining constant Required Prepare a sales forecast by product and in total for Audio 2 Go, Inc , for this year Audio 2 Go, Inc Sales Budget For This Year Units Price Model Total Sales $ A 1 A 2 A 3 lull A 4 A 5 Il A 6 Total

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Sales Forecast and Budget Audio-2-Go, Inc., manufactures MP3 players. Models A-1, A-2, and A-3 are small and light. They are attached to armbands and use

Sales Forecast and Budget

Audio-2-Go, Inc., manufactures MP3 players. Models A-1, A-2, and A-3 are small and light. They are attached to armbands and use flash memory. Models A-4 and A-5 are somewhat larger and use a built-in hard drive; they can be put into fanny packs for use while working out. It is now early January, and Audio-2-Gos budgeting team is finalizing the sales budget for this year. Sales in units and dollars for last year were as follows:

Model	Number Sold	Price	Revenue
A-1	21,000	$ 70	$1,470,000
A-2	33,000	85	2,805,000
A-3	58,000	100	5,800,000
A-4	15,000	150	2,250,000
A-5	4,500	250	1,125,000
			$13,450,000

In looking over the last year's sales figures, Audio-2-Gos sales budgeting team recalled the following:

Model A-1 costs were rising faster than the price could rise. Preparatory to phasing out this model, Audio-2-Go, Inc., planned to slash advertising for this model and raise its price by 20 percent. The number of units of Model A-1 to be sold was forecast to be 50 percent of last year's units.
Model A-5 was introduced on November 1 of last year. It contains a built-in 20 GB hard drive and can be synchronized with several popular music software programs. Audio-2-Go brought out this model to match competitors audio players, but the price is so much higher than other Audio-2-Go products, that sales have been disappointing. The company plans to discontinue this model on June 30 of this year, and thinks that monthly sales will remain at last year's level if the sales price remains unchanged.
Audio-2-Go plans to introduce Model A-6 on July 1 of this year. It will be a high-end player that will be lighter and more versatile than Model A-5 (which it will replace). The target price for this model is $180; unit sales are estimated to equal 3,000 per month.
A competitor has announced plans to introduce an improved version of Model A-3. Audio-2-Go believes that the Model A-3 price must be cut 20 percent to maintain unit sales at last year's level.
It was assumed that unit sales of all other models would increase by 10 percent, prices remaining constant.

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Required: Prepare a sales forecast by product and in total for Audio-2-Go, Inc., for this year. Audio-2-Go, Inc. Sales Budget For This Year Units Price Model Total Sales $ A-1 A-2 A-3 lull A-4 A-5 Il A-6 Total