Sales Forecast and Flexible Budget Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,280 for the Sleepeze, 12,300 for the Plushette, and 5,310 for the Ultima. Gene Dixon, vice president of sales, has provided the following information: a. Salaries for his office (including himself at $62,150, a marketing research assistant at $35,450, and an administrative assistant at $24,550) are budgeted for $122,150 next year. b. Depreciation on the offices and equipment is $18,800 per year. c. Office supplies and other expenses total $18,300 per year. d. Advertising has been steady at $19,750 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 10 percent of first-year Ultima sales for a print and television campaign. e. Commissions on the Sleepeze and Plushette lines are 6 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores. f. Last year, shipping for the Sleepeze and Plushette lines averaged $50 per unit sold. Gene expects the Ultima line to ship for $70 per unit sold since this model features a larger mattress. Required: 1. Suppose that Gene is considering three sales scenarios as follows: Optimistic Pessimistic Expected Price Quantity Price Quantity Price Quantity Sleepeze $187 12,670 $207 15,280 $207 17,810 Plushette 303 10,130 359 12,300 367 14,500 Ultima 850 2,240 940 5,310 1,140 5,310 Prepare a revenue budget for the Sales Division for the coming year for each scenario. Olympus, Inc. Revenue Budget For the Coming Year Pessimistic Sleepeze $ Plushette Expected Optimistic