Audio-2-Go, Inc., manufactures MP3 players. Models A-1, A-2, and A-3 are small and light. They are attached to armbands and use flash memory. Models A-4 and A-5 are somewhat larger and use a built-in hard drive; they can be put into fanny packs for use while working out. It is now early January, and Audio-2-Go’s budgeting team is finalizing the sales budget for this year. Sales in units and dollars for last year were as follows: Model Number Sold Price Revenue A-1 23,000 $ 50 $1,150,000 A-2 34,000 80 2,720,000 A-3 52,000 100 5,200,000 A-4 16,000 150 2,400,000 A-5 4,500 230 1,035,000 $12,505,000 In looking over the last year's sales figures, Audio-2-Go’s sales budgeting team recalled the following: Model A-1 costs were rising faster than the price could rise. Preparatory to phasing out this model, Audio-2-Go, Inc., planned to slash advertising for this model and raise its price by 30 percent. The number of units of Model A-1 to be sold was forecast to be 50 percent of last year's units. Model A-5 was introduced on November 1 of last year. It contains a built-in 20 GB hard drive and can be synchronized with several popular music software programs. Audio-2-Go brought out this model to match competitors’ audio players, but the price is so much higher than other Audio-2-Go products, that sales have been disappointing. The company plans to discontinue this model on June 30 of this year, and thinks that monthly sales will remain at last year's level if the sales price remains unchanged. Audio-2-Go plans to introduce Model A-6 on July 1 of this year. It will be a high-end player that will be lighter and more versatile than Model A-5 (which it will replace). The target price for this model is $170; unit sales are estimated to equal 4,000 per month. A competitor has announced plans to introduce an improved version of Model A-3. Audio-2-Go believes that the Model A-3 price must be cut 20 percent to maintain unit sales at last year's level. It was assumed that unit sales of all other models would increase by 10 percent, prices remaining constant. Required: Prepare a sales forecast by product and in total for Audio-2-Go, Inc., for this year. Audio-2-Go, Inc.Sales BudgetFor This Year Model Units Price Total Sales A-1 fill in the blank 1 $fill in the blank 2 $fill in the blank 3 A-2 fill in the blank 4 fill in the blank 5 fill in the blank 6 A-3 fill in the blank 7 fill in the blank 8 fill in the blank 9 A-4 fill in the blank 10 fill in the blank 11 fill in the blank 12 A-5 fill in the blank 13 fill in the blank 14 fill in the blank 15 A-6 fill in the blank 16 fill in the blank 17 fill in the blank 18 Total $fill in the blank 19

Audio-2-Go, Inc., manufactures MP3 players. Models A-1, A-2, and A-3 are small and light. They are attached to armbands and use flash memory. Models A-4 and A-5 are somewhat larger and use a built-in hard drive; they can be put into fanny packs for use while working out. It is now early January, and Audio-2-Go’s budgeting team is finalizing the sales budget for this year. Sales in units and dollars for last year were as follows: Model Number Sold Price Revenue A-1 23,000 $ 50 $1,150,000 A-2 34,000 80 2,720,000 A-3 52,000 100 5,200,000 A-4 16,000 150 2,400,000 A-5 4,500 230 1,035,000 $12,505,000 In looking over the last year's sales figures, Audio-2-Go’s sales budgeting team recalled the following: Model A-1 costs were rising faster than the price could rise. Preparatory to phasing out this model, Audio-2-Go, Inc., planned to slash advertising for this model and raise its price by 30 percent. The number of units of Model A-1 to be sold was forecast to be 50 percent of last year's units. Model A-5 was introduced on November 1 of last year. It contains a built-in 20 GB hard drive and can be synchronized with several popular music software programs. Audio-2-Go brought out this model to match competitors’ audio players, but the price is so much higher than other Audio-2-Go products, that sales have been disappointing. The company plans to discontinue this model on June 30 of this year, and thinks that monthly sales will remain at last year's level if the sales price remains unchanged. Audio-2-Go plans to introduce Model A-6 on July 1 of this year. It will be a high-end player that will be lighter and more versatile than Model A-5 (which it will replace). The target price for this model is $170; unit sales are estimated to equal 4,000 per month. A competitor has announced plans to introduce an improved version of Model A-3. Audio-2-Go believes that the Model A-3 price must be cut 20 percent to maintain unit sales at last year's level. It was assumed that unit sales of all other models would increase by 10 percent, prices remaining constant. Required: Prepare a sales forecast by product and in total for Audio-2-Go, Inc., for this year. Audio-2-Go, Inc.Sales BudgetFor This Year Model Units Price Total Sales A-1 fill in the blank 1 $fill in the blank 2 $fill in the blank 3 A-2 fill in the blank 4 fill in the blank 5 fill in the blank 6 A-3 fill in the blank 7 fill in the blank 8 fill in the blank 9 A-4 fill in the blank 10 fill in the blank 11 fill in the blank 12 A-5 fill in the blank 13 fill in the blank 14 fill in the blank 15 A-6 fill in the blank 16 fill in the blank 17 fill in the blank 18 Total $fill in the blank 19

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Sales Forecast and Budget

Model	Number Sold	Price	Revenue
A-1	23,000	$ 50	$1,150,000
A-2	34,000	80	2,720,000
A-3	52,000	100	5,200,000
A-4	16,000	150	2,400,000
A-5	4,500	230	1,035,000
			$12,505,000

In looking over the last year's sales figures, Audio-2-Go’s sales budgeting team recalled the following:

Model A-1 costs were rising faster than the price could rise. Preparatory to phasing out this model, Audio-2-Go, Inc., planned to slash advertising for this model and raise its price by 30 percent. The number of units of Model A-1 to be sold was forecast to be 50 percent of last year's units.
Model A-5 was introduced on November 1 of last year. It contains a built-in 20 GB hard drive and can be synchronized with several popular music software programs. Audio-2-Go brought out this model to match competitors’ audio players, but the price is so much higher than other Audio-2-Go products, that sales have been disappointing. The company plans to discontinue this model on June 30 of this year, and thinks that monthly sales will remain at last year's level if the sales price remains unchanged.
Audio-2-Go plans to introduce Model A-6 on July 1 of this year. It will be a high-end player that will be lighter and more versatile than Model A-5 (which it will replace). The target price for this model is $170; unit sales are estimated to equal 4,000 per month.
A competitor has announced plans to introduce an improved version of Model A-3. Audio-2-Go believes that the Model A-3 price must be cut 20 percent to maintain unit sales at last year's level.
It was assumed that unit sales of all other models would increase by 10 percent, prices remaining constant.

Required:

Prepare a sales forecast by product and in total for Audio-2-Go, Inc., for this year.

Audio-2-Go, Inc.Sales BudgetFor This Year

Model	Units	Price	Total Sales
A-1	fill in the blank 1	$fill in the blank 2	$fill in the blank 3
A-2	fill in the blank 4	fill in the blank 5	fill in the blank 6
A-3	fill in the blank 7	fill in the blank 8	fill in the blank 9
A-4	fill in the blank 10	fill in the blank 11	fill in the blank 12
A-5	fill in the blank 13	fill in the blank 14	fill in the blank 15
A-6	fill in the blank 16	fill in the blank 17	fill in the blank 18
Total			$fill in the blank 19

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.