Question

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

Part 1) FlashKick Company

Sales Budget For the First Quarter of Next Year

	January	February	March	Quarter
Practice ball:
Units	50,000	56,000	80,000	186,000
Unit price ($)	8.25	8.25	8.25	8.25
Sales ($) - A	412,500	462,000	660,000	1,534,500
Match ball:
Units	7000	7500	13000	27,500
Unit price ($)	15	15	15	15
Sales ($) - B	105,000	112,500	195,000	412,500
Total sales ($) - (A+B)	517,500	574,500	855,000	1,947,000

Total Sales = Units Sold x unit sales price

Part 2) FlashKick Company

Sales Budget For the First Quarter of Next Year (if added third line of Tournament ball)

	January	February	March	Quarter
Practice ball:
Units	50,000	56,000	80,000	186,000
Unit price ($)	8.25	8.25	8.25	8.25
Sales ($) - A	412,500	462,000	660,000	1,534,500
Match ball:
Units (refer note)	4200	4500	7800	16,500
Unit price ($)	15	15	15	15
Sales ($) - B	63,000	67,500	117,000	247,500
Tournament ball:
Units (40% of Match balls)	2800	3000	5200	11,000
Unit price ($)	42	42	45
Sales ($) - C	117,600	126,000	234,000	477,600
Total sales ($) - (A+B+C)	593,100	655,500	1,011,000	2,259,600

Note : Since 40% of Match balls expected to sell of Tournament ball, then remaining 60% of Match balls are of match balls.

January – total match balls 7000 – 60% - 4200 for match balls and 40% 2800 of Tournament ball

February – 7500 – 60% = 4500 for match balls and 40% - 3000 for Tournament balls

March – 13000 – 60% = 7800 for match balls and 40% - 5200 for Tournament balls.