To remember: 1. To start: Waffle Business 2. We produce 120 products per day: 80 for Chocolate Waffle Dip & 40 for Caramel Waffle Dip 3. Chocolate Waffle Dip Total cost of the product without the profit margin = P72 With profit margin = 295 4. Caramel Waffle Dip Total cost of the product without the profit margin = P64 With profit margin = P85 = I. SALES BUDGET a) Create a 3-YEAR FORECASTED SALES BUDGET using the template provided. YEAR 1 SALES BUDGET 2nd Qtr 3rd Qtr 1st Qtr 4th Qtr Total 0 PERIOD PROJECTED SALES IN UNITS ESTIMATED SELLING PRICE TOTAL SALES 0 0 0 0 0 YEAR 2 SALES BUDGET 2nd Qtr 3rd Qtr 1st Qtr 4th Qtr Total 0 PERIOD PROJECTED SALES IN UNITS ESTIMATED SELLING PRICE TOTAL SALES 0 0 0 0 0 YEAR 3 SALES BUDGET 2nd Qtr 3rd Qtr 1st Qts 4th Qtr Total 0 PERIOD PROJECTED SALES IN UNITS ESTIMATED SELLING PRICE TOTAL SALES 0 0 0 0 0 b) Create your own assumptions for the succeeding forecast for each year which includes your target sales volume, forecasted selling price and the forecasted sales for each period and the year in total. Assumptions: 2022 1. Expected sales volume shall increase by 3% every quarter. 2. The forecasted selling price of the product is P90. 2023 1. Expected sales volume shall increase by 3% every quarter. 2. The forecasted selling price of the product is P90 at the 1st to 3rd quarter and it shall increase to P91 at the 4th quarter. 2024 1. Expected sales volume shall increase by 3% every quarter. 2. The forecasted selling price of the product is P91 at the 1st to 3rd quarter and it shall increase to P93 at the 4th quarter. ========= ========= II. PRODUCTION BUDGET a) Create a 3-YEAR FORECASTED PRODUCTION BUDGET using the template provided. Year 1 Production Budget 1st Qtr 2nd Otr 3rd Qtr 4th Qtr Total Period Planned Sales Desired Ending Inventory Total Needs Beggining Inventory Units to be produced 0 0 0 0 0 0 0 0 0 0 Year 2 Production Budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total Period Planned Sales Desired Ending Inventory Total Needs Beggining Inventory Units to be produced 0 0 0 0 0 0 0 0 0 0 Year 3 Production Budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total Period Planned Sales Desired Ending Inventory Total Needs Beggining Inventory Units to be Produced 0 0 0 0 0 0 0 0 0 0 b) Create your own assumptions for the succeeding forecast for each year and the whole year in total. Assumptions: 2022 1. The planned sales of the company shall increase by 3% every quarter. The 1st quarters planned sales would be _?__ (insert any number) 2. The desired ending inventory is 8% of the same quarter production. 3. The beginning inventory for a given quarter is the same as the previous quarter's ending inventory. The beg. Inventory of the 1st Quarter is (insert any number) 2023 1. The planned sales of the company shall increase by 5% every quarter. The 1st quarters planned sales would be __? (insert any number) 2. The desired ending inventory is 10% of the same quarter production. 3. The beginning inventory for a given quarter is the same as the previous quarter's ending inventory. The beg. Inventory of the 1st Quarter is _? (insert any number) 2024 The planned sales the company shall increase by 7% every quarter. The 1st quarters planned sales would be _?__ (insert any number) 2. The desired ending inventory is 12% of the same quarter production. 3. The beginning inventory for a given quarter is the same as the previous quarter's ending inventory. The beg. Inventory of the 1st Quarter is ? (insert any number)
