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Totally Unique T-Shirts has very seasonal sales.For 2018 management is trying to decide whether to establish...

Totally Unique T-Shirts has very seasonal sales.For 2018 management is trying to decide whether to establish a sales budget based on average sales or on sales estimated by quarter.The unit sales for 2018 are expected to be 8% higher than 2017 sales.Unit shirt sales by quarter for 2017 were as follows:

2017 Actual Sales

Children’s Ts

Women’s T’s

Men’s T’s

Total

Winter quarter

200

200

100

500

Spring quarter

200

250

200

650

Summer quarter

400

300

200

900

Fall quarter

200

250

100

550

Total

1,000

1,000

600

2,600

Required: Assuming an 8% increase in sales, prepare a sales budget for each quarter of 2018 using the following:

                               1- Average quarterly sales (hint – winter quarter children’s shirts are 270 (1,000 total x 1.08 increase / 4 quarters)

                               2- Actual quarterly sales.(hint – winter quarter children’s shirts are 216 (200 x 1.08)

                               3- Suggest advantages of each method.

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ekkarill92 answered 1 year ago
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