The sales forecast for Enzo's XY and AB product for each quarter of the budget year 2023 is summarized as follow. First Second Third Fourth Products Total Quarter Quarter Quarter Quarter XY 3,000 4,000 5,000 2,500 14,500 AB 1,500 2,500 3,700 4,200 11,900 After considering the expected market environment situations in 2023, the budget committee concluded that the forecast for the second and fourth quarter seems overstated and decided to decrease the same by 20 %. Moreover, the committee decided to increase by 5% of the selling price of the two products P100.00 per unit of XY and P80 per unit of АВ. What will be the total sales budget of product XY and AB in 2023? Create a table to compute units per quarter and in pesos?
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.
Prepare for Ending Finish Goods Inventory
Based on the budgeted sales and Enzo’s policy to have enough inventories at the end of
the quarter is equal to 35% of the next quarter's budgeted sales.
Assume that the budgeted sales for the first quarter of year 2024 are 3,000 units of XY,
and 4,700 units of AB
Step by step
Solved in 2 steps with 3 images
