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Leaf Industries is preparing its master budget for 2013. Relevant data pertaining to its sales budget...

Leaf Industries is preparing its master budget for 2013. Relevant data pertaining to its sales budget are as follows:

Sales for the year are expected to total 8,000,000 units. Quarterly sales are 25%, 30%, 15%, and 30%, respectively. The sales price is expected to be $2.00 per unit for the first quarter and then be increased to $2.20 per unit in the second quarter.

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Total for Yr

Unit Sales

8,000,000

Unit Selling Price

Total Sales

Solutions

Expert Solution

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Total for Yr

Unit Sales

 2,000,000 2,400,000 1,200,000 2,400,000

8,000,000

Unit Selling Price

 $2.00 $2.20 $2.20 $2.20 $2.15

Total Sales

 $4,000,000 $5,280,000 $2,640,000 $5,280,000

$17,200,000

1st Quarter Unit Sales = 0.25 *8,000,000= 2,000,000 units

2nd Quarter Unit Sales = 0.30 *8,000,000= 2,400,000 units

3rd Quarter Unit Sales = 0.15 *8,000,000= 1,200,000 units

4th Quarter Unit Sales = 0.30 *8,000,000= 2,400,000 units

Total Sales for each quarter can be calculated by multiplying Price in each Quarter with Unit Sales

Total Sales for Year=Sum of Total Sales for each Quarter = $17,200,000

Unit Selling Price for Year= $17,200,000/8,000,000 = $2.15

ekkarill92 answered 2 years ago
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