45.7k views
5 votes
Edington Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $14 and $27, respectively. Because of the intense competition Edington faces, management budgets sales semiannually. Its projections for the first 2 quarters of 2020 are as follows. Unit Sales Product Quarter 1 Quarter 2 XQ-103 22,840 26,380 XQ-104 13,540 16,720 No changes in selling prices are anticipated. Prepare a sales budget for the 2 quarters ending June 30, 2020. List the products and show for each quarter and for the 6 months, units, selling price, and total sales by product and in total.

1 Answer

5 votes

Answer:

The sales projections for the first 6 months are:

Product: XQ-103

Q1 + Q2 Sales (units) = 49,220

Q1 + Q2 Sales ($) = $689,080

Product: XQ-104

Q1 + Q2 Sales (units) = 30,260

Q1 + Q2 Sales ($) = $817,020

Step-by-step explanation:

A sales budget is implemented to support the planning process of a Business. It give an indication of the commercial engagements the business intends pursuing over a course or period and helps the Business managers evaluate if this is in line with the corporate objective.

A lot of factors are considered before developing a sales Budget. Some are external while others are internal. These are a few:

*First to be considered is the historical sales performance of the business.

*Then the improvement the business wants to make in how it sells and how it markets its products in the new year.

*The size of the market. Are we seeing more users or uses for our product

*competitive landscape. How well do we fare versus competition. Is it easy for new players to come into the industry etc

Edington Electronics Inc.

Sales Budget

for 2 Quarters ending June 30 2020

Product: XQ-103

Q1 projections.

Sales (units) = 22,840

Selling price Per Unit = $14

Sales in Quarter 1 = $319,760

Q2 projections.

Sales (units) = 26,380

Selling price Per Unit = $14

Sales in Quarter 2 = $369,320

First half Year projections.

Q1 + Q2 Sales (units) = 49,220

Q1 + Q2 Sales ($) = $689,080

Product: XQ-104

Q1 projections.

Sales (units) = 13,540

Selling price Per Unit = $27

Sales in Quarter 1 = $365,580

Q2 projections.

Sales (units) = 16,720

Selling price Per Unit = $27

Sales in Quarter 2 = $451,440

First half Year projections.

Q1 + Q2 Sales (units) = 30,260

Q1 + Q2 Sales ($) = $817,020

User Leegent
by
5.0k points