Marketing Expense BudgetTimothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used regularly for 45 days, will grow hairvia the telephone and Internet.in bald spots (with varying degrees of success). Timothy calls his lotion Hair-Again and is sellingHis major form of marketing is through 15-minute infomercials and Internet advertising. Timothy sells each 16-ounce bottle of Hair-Again for $15 and pays a commission of 3 percent of sales to telephone operators who field the 1-800 phone calls from potentialcustomers. Fixed marketing expenses for each quarter of the coming year include:Internet banner ads$7,500Telephone operator time4,000Travel2,000In addition, early next year Timothy intends to film and show infomercials on television. He expects the cost to be $12,000 inquarters 1 and 2, and that the cost will rise to $24,000 in each of quarters 3 and 4. Timothy expects the following unit sales of Hair-Again:Quarter 15,000Quarter 215,000Quarter 340,000Quarter 435,000Required:1. Construct a marketing expense budget for Hair-Again for the coming year. Show total amounts by quarter and in total for theyear. If required, round your answers to two decimal places.Hair-AgainMarketing Expense BudgetFor the Year Ended December 31TotalQuarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 435,000Required:1. Construct a marketing expense budget for Hair-Again for the coming year. Show total amounts by quarter and in total for theyear. If required, round your answers to two decimal places.Hair-AgainMarketing Expense BudgetFor the Year Ended December 31Quarter 1Quarter 2 Quarter 3 Quarter 4TotalTotal variable expenseFixed marketing expense:Total fixed expenseTotal marketing expense2. What if the cost of internet ads rises to $16,000 in Quarters 2 through 4? How would that affect variable marketing expense?Fixed marketing expense? Total marketing expense? If no effect, enter "0" and select "no impact".Variable marketing expenseFixed marketing expenseTotal marketing expense

Budgets are the forecasts or estimates that are made for future period of time. It will consists of…

Answered: 1. Construct a marketing expense budget…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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