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		6,000		$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.

Flash Kick Company Sales Budget For the First Quarter of Next Year January February March Practice ball: Units Quarter Unit price Sales $ Match ball: Units Unit price A Sales A TATA A Total sales

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.

Answer 1

Answer

--Requirement 1

Sales Budget
	Jan	Feb	Mar	Quarter
Practice Ball:
Units	50000	56000	80000	186000
Unit Price	$8.25	$8.25	$8.25	$8.25
Sales	$412,500	$462,000	$660,000	$1,534,500
Match Ball:
Units	6000	7500	13000	26500
Unit Price	$15.00	$15.00	$15.00	$15.00
Sales	$90,000	$112,500	$195,000	$397,500
Total Sales	$502,500	$574,500	$855,000	$1,932,000

--Requirement 2

Sales Budget
	Jan	Feb	Mar	Quarter
Practice Ball:
Units	50000	56000	80000	186000
Unit Price	$8.25	$8.25	$8.25	$8.25
Sales	$412,500	$462,000	$660,000	$1,534,500
Match Ball:
Units	3600	4500	7800	15900
Unit Price	$15.00	$15.00	$15.00	$15.00
Sales	$54,000	$67,500	$117,000	$238,500
Tournament Ball:
Units	2400	3000	5200	10600
Unit Price	$42.00	$42.00	$45.00	$15.00
Sales	$100,800	$126,000	$234,000	$159,000
Total Sales	$567,300	$655,500	$1,011,000	$1,932,000