Alger Inc. manufactures six models of leaf blowers and weed eaters. Alger's budgeting team is finalizing the sales budget for the coming year. Sales in units and dollars for last year follow: Product Number Sold Price ($) Revenue LB-1 14,700 32 $ 470,400 LB-2 18,000 20 360,000 WE-6 25,200 15 378,000 WE-7 16,200 10 162,000 WE-8 6,900 18 124,200 WE-9 4,000 22 88,000 Total $1,582,600 In looking over the previous year's sales figures, Alger's sales budgeting team recalled the followi
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Sales Budget
Alger Inc. manufactures six models of leaf blowers and weed eaters. Alger's budgeting team is finalizing the sales budget for the coming year. Sales in units and dollars for last year follow:
| Product | Number Sold | Price ($) | Revenue | |
| LB-1 | 14,700 | 32 | $ 470,400 | |
| LB-2 | 18,000 | 20 | 360,000 | |
| WE-6 | 25,200 | 15 | 378,000 | |
| WE-7 | 16,200 | 10 | 162,000 | |
| WE-8 | 6,900 | 18 | 124,200 | |
| WE-9 | 4,000 | 22 | 88,000 | |
| Total | $1,582,600 |
In looking over the previous year's sales figures, Alger's sales budgeting team recalled the following:
- Model LB-1 is a newer version of the leaf blower with a gasoline engine. The LB-1 is mounted on wheels instead of being carried. This model is designed for the commercial market and did better than expected in its first year. As a result, the number of units of Model LB-1 to be sold was
forecast at 300% of the previous year's units. - Models WE-8 and WE-9 were introduced on July 1 of last year. They are lighter versions of the traditional weed eater and are designed for smaller households or condo units. Alger estimates that demand for both models will continue at the previous year's rate.
- A competitor has announced plans to introduce an improved version of model WE-6, Alger's traditional weed eater. Alger believes that the model WE-6 price must be cut 35% to maintain unit sales at the previous year's level.
- It was assumed that unit sales of all other models would increase by 8%, prices remaining constant.
Required:
Prepare a sales budget by product and in total for Alger Inc. for the coming year. Do not include a multiplication symbol as part of your answer.
Alger Inc.Sales BudgetFor the Coming Year
| Model | Units | Price | Total Sales |
| LB-1 | fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 |
| LB-2 | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 |
| WE-6 | fill in the blank 7 | fill in the blank 8 | fill in the blank 9 |
| WE-7 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
| WE-8 | fill in the blank 13 | fill in the blank 14 | fill in the blank 15 |
| WE-9 | fill in the blank 16 | fill in the blank 17 | fill in the blank 18 |
| Total | $fill in the blank 19 |
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