In: Accounting
Sales Budget
FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick’s best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following:
Practice Balls | Match Balls | ||||||
Units | Selling Price | Units | Selling Price | ||||
January | 50,000 | $8.25 | 7,000 | $15.00 | |||
February | 56,000 | $8.25 | 7,500 | $15.00 | |||
March | 80,000 | $8.25 | 13,000 | $15.00 | |||
April | 100,000 | $8.25 | 18,000 | $15.00 |
Required:
1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent.
FlashKick Company | ||||
Sales Budget | ||||
For the First Quarter of Next Year | ||||
January | February | March | Quarter | |
Practice ball: | ||||
Units | ||||
Unit price | $ | $ | $ | $ |
Sales | $ | $ | $ | $ |
Match ball: | ||||
Units | ||||
Unit price | $ | $ | $ | $ |
Sales | $ | $ | $ | $ |
Total sales | $ | $ | $ | $ |
2. What if FlashKick added a third line—tournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of $42 each in January and February, and $45 each in March? Prepare a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent.
FlashKick Company | ||||
Sales Budget | ||||
For the First Quarter | ||||
January | February | March | Quarter | |
Practice ball: | ||||
Units | ||||
Unit price | $ | $ | $ | $ |
Sales | $ | $ | $ | $ |
Match ball: | ||||
Units | ||||
Unit price | $ | $ | $ | $ |
Sales | $ | $ | $ | $ |
Tournament ball: | ||||
Units | ||||
Unit price | $ | $ | $ | $ |
Sales | $ | $ | $ | $ |
Total sales | $ | $ | $ | $ |
Answer:
1. Sales budget for FlashKick for the first three months ( Practice Balls + Match Balls )
FlashKick Company | ||||
Sales Budget | ||||
For the First Quarter of Next Year | ||||
January | February | March | Quarter | |
Practice ball: | ||||
Units | 50,000 | 56,000 | 80,000 | |
Unit price | $8.25 | $8.25 | $8.25 | |
Sales | $412,500 | $462,000 | $660,000 | $1,534,500 |
Match ball: | ||||
Units | 7,000 | 7,500 | 13,000 | |
Unit price | $15 | $15 | $15 | |
Sales | $105,000 | $112,500 | $195,000 | $412,500 |
Total sales | $517,500 | $574,500 | $855,000 | $1,947,000 |
2. Sales budget for FlashKick for the first three months ( Practice Balls + Match Balls + Tournament ball )
Units of Tournament balls sold in January = 40% of January match balls units = 7,000 units * 40% = 2,800 units
Units of Tournament balls sold in February = 40% of February match balls units = 7,500 units * 40% = 3,000 units
Units of Tournament balls sold in March = 40% of March match balls units = 13,000 units * 40% = 5,200 units
FlashKick Company | ||||
Sales Budget | ||||
For the First Quarter | ||||
January | February | March | Quarter | |
Practice ball: | ||||
Units | 50,000 | 56,000 | 80,000 | |
Unit price | $8.25 | $8.25 | $8.25 | |
Sales | $412,500 | $462,000 | $660,000 | $1,534,500 |
Match ball: | ||||
Units | 7,000 | 7,500 | 13,000 | |
Unit price | $15 | $15 | $15 | |
Sales | $105,000 | $112,500 | $195,000 | $412,500 |
Tournament ball: | ||||
Units | 2,800 | 3,000 | 5,200 | |
Unit price | $42 | $42 | $45 | |
Sales | $117,600 | $126,000 | $234,000 | $477,600 |
Total sales | $635,100 | $700,500 | $1,089,900 | $2,424,600 |