Scenario

Therefore, you and the marketing department manager have decided the following: Due to the increased number of marketing activities in 2021, the budgets for the marketing department will be increased by 20% more than the actual spending in the year 2020. Marketing software is to be subscribed from the year 2021, and the estimated subscription is $31,000 per annum. Five full-time staff to be employed, and their total remuneration package, including the superannuation, is $55,000 per employee. Staff training costs will be increased by $42,000 from the actual spending in 2020 as more training is planned. The creative design team will have the same budget as the one in 2020. Social Media Advertisement costs are estimated at $250,000. All other activities are estimated to be the same as the actual spending in 2020.

A) In the first place, complete the following table provided by the marketing department. You are required to complete the BUDGET column under 2021 only!!!

B) After the meeting with the marketing manager, the manager informed you of the followings:

• All new equipment in 2021 will be on a lease contract.
• The Sales Support tools will be only rented out when sales promotion is on.

Due to the changes in the plan, the budget is to be adjusted with the following information:

• The lease costs for the new equipment in 2021 is estimated at approx.$8,000 per month.
• The expected total rental costs for the sales support tools for the year 2021 are estimated at approx. $88,000 for 20 sales promotion activities.

Required: You are now required to adjust the budget for the marketing department for the year 2021.

Based on above Answer in Part A- Complete the below table

2020 2021 Marketing Department Activities Actual ($) Budget ($) Actual ($) Budget ($) $25,000 $22,000 $32,000 $28,000 $150,000 $167,000 N/A N/A Market Research Owned Media (homepage, blog) Video advertising (YouTube) Social Media Advertisement Creative Design Marketing software Equipment purchases Staff Salary Staff training Sales support tools New Service Development Total $60,000 $120,000 $210,000 $550,000 $85,000 $100,000 $120,000 $1,452,000 $70,000 $124,000 $215,000 $590,000 $44,000 $210,000 $140,000 $1,610,000 2020 2021 Marketing Department Activities Actual ($) Budget ($) Actual ($) Budget ($) $25,000 $22,000 $32,000 $28,000 $150,000 $167,000 N/A N/A Market Research Owned Media (homepage, blog) Video advertising (YouTube) Social Media Advertisement Creative Design Marketing software Equipment purchases Staff Salary Staff training Sales support tools New Service Development Total $60,000 $120,000 $210,000 $550,000 $85,000 $100,000 $120,000 $1,452,000 $70,000 $124,000 $215,000 $590,000 $44,000 $210,000 $140,000 $1,610,000