Sales Forecast and Budget

Video$-$Forward, Inc., designs and manufactures wearable video cameras. Models A$-1,$ A$-2,$ and A$-3$ are lightweight video cameras that can be used on arms and headbands. Models A$-4$ and A$-5$ have larger memory, better resolution, and more Wi$-$Fi$-$related features. It is now early January and Video$-$Forward's budgeting team is finalizing the sales budget for this year. Sales in units and in dollars for last year were as follows:

Model Number Sold Price Revenue

A$-125,000$ $ $70$ $$1,750,000$

A$-237,000802,960,000$

A$-355,0001005,500,000$

A$-416,0001402,240,000$

A$-52,000240480,000$

$$12,930,000$

In looking over the last year's sales figures, Video$-$Forward's sales budgeting team recalled the following:

Model A$-1$ costs were rising faster than the price could rise. Preparatory to phasing out this model, Video$-$Forward, Inc., planned to slash advertising for this model and raise its price by $30$ 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. Video$-$Forward brought out this model to match competitors' video cameras, but the price is so much higher than other Video$-$Forward 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.

Video$-$Forward 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 $$190$; unit sales are estimated to equal $3,000$ per month.

A competitor has announced plans to introduce an improved version of Model A$-3.$ Video$-$Forward 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 Video$-$Forward, Inc., for this year.

Video$-$Forward, Inc.

Sales Budget

For This Year

Model Units Price Total Sales

A$-1$ fill in the blank $1$

$12,500$

$fill in the blank $2$

$70$

$fill in the blank $3$

A$-2$ fill in the blank $4$

$40,700$

fill in the blank $5$

$80$

fill in the blank $6$

A$-3$ fill in the blank $7$

fill in the blank $8$

fill in the blank $9$

A$-4$ fill in the blank $10$

fill in the blank $11$

$140$

fill in the blank $12$

A$-5$ fill in the blank $13$

fill in the blank $14$

$240$

fill in the blank $15$

A$-6$ fill in the blank $16$

fill in the blank $17$

fill in the blank $18$

Total $fill in the blank $19$