Sales Forecast and Flexible Budget Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,010 for the Sleepeze, 12,390 for the Plushette, and 4,920 for the Ultima. Gene Dixon, vice president of sales, has provided the following information: a. Salaries for his office (including himself at $64,350, a marketing research assistant at $37,000, and an administrative assistant at $25,950) are budgeted for $127,300 next year. b. Depreciation on the offices and equipment is $17,650 per year. c. Office supplies and other expenses total $19,050 per year. d. Advertising has been steady at $20,700 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 20 percent of first-year Ultima sales for a print and television campaign. e. Commissions on the Sleepeze and Plushette lines are 5 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores. f. Last year, shipping for the Sleepeze and Plushette lines averaged $55 per unit sold. Gene expects the Ultima line to ship for $75 per unit sold since this model features a larger mattress. Required: 1. Suppose that Gene is considering three sales scenarios as follows: Pessimistic Expected Optimistic Price Quantity Quantity Price Quantity $193 15,010 $193 18,260 356 12,390 365 14,280 960 4,920 1,170 4,920 Sleepeze $175 12,530 Plushette 299 10,410 880 1,830 Ultima Price Quantity Price Prepare a revenue budget for the Sales Division for the coming year for each scenario. Olympus, Inc. Revenue Budget For the Coming Year Sleepeze Plushette Ultima Total sales Pessimistic Expected Optimistic 2. Prepare a flexible expense budget for the Sales Division for the three scenarios above. If required, round answers to the nearest dollar. Olympus, Inc. Flexible Expense Budget