the following sales forecast for the coming year, 2021.ratio as reflected in the estimates of the sales forecast.electronic typewriters. The company's market research department preparedThe Sonia Company has two product lines, high-speed printers andElectronic TypewritersHigh-speed Printers40,000170,00010%25%P3,000Sales price per unitP5,000The sales force submitted the following estimates:Electronic TypewritersHigh-speed PrintersLuzon3,6002,400VisayasMindanao8,4003,0006,0003,600Total15,00012,000To establish an acceptable forecast, the budget director averages the twoostimates. The resulting forecast is then broken down by territories in the sameretio as reflected in the estimates of the sales forecast,REQUIRED:1. Prepare a sales budget by sales territory and by product lines for the year2021. Use the following format:Sonia CompanySales BudgetFor the Year Ending Dec. 31, 2021Electronic TypewritersHigh-speed PrintersUnitsAmountUnitsAmountLuzonVisayasMindanaoTotal

Estimated sales as per market research department : Electronic typewriter = 170000 * 10% = 17000…

The Sonia Company has two product lines, high-speed printers and electronic typewriters. The company's market research department prepared the following sales forecast for the coming year, 2021. Electronic Typewriters Industry's total sales forecast Company's share in the market High-speed Printers 170,000 40,000 10% 25% Sales price per unit P3,000 P5,000 The sales force submitted the following estimates: Electronic Typewriters High-speed Printers 2,400 Luzon 3,600 Visayas Mindanao 8,400 3,000 15,000 6,000 3,600 Total 12,000 To establish an acceptable forecast, the budget director averages the two estimates. The resulting forecast is then broken down by territories in the same ratio as reflected in the estimates of the sales forecast. REQUIRED: 1. Prepare a sales budget by sales territory and by product lines for the year 2021. Use the following format: Sonia Company Sales Budget For the Year Ending Dec. 31, 2021 Electronic Typewriters High-speed Printers Units Amount Units Amount Luzon Visayas Mindanao Total

The Sonia Company has two product lines, high-speed printers and electronic typewriters. The company's market research department prepared the following sales forecast for the coming year, 2021. Electronic Typewriters Industry's total sales forecast Company's share in the market High-speed Printers 170,000 40,000 10% 25% Sales price per unit P3,000 P5,000 The sales force submitted the following estimates: Electronic Typewriters High-speed Printers 2,400 Luzon 3,600 Visayas Mindanao 8,400 3,000 15,000 6,000 3,600 Total 12,000 To establish an acceptable forecast, the budget director averages the two estimates. The resulting forecast is then broken down by territories in the same ratio as reflected in the estimates of the sales forecast. REQUIRED: 1. Prepare a sales budget by sales territory and by product lines for the year 2021. Use the following format: Sonia Company Sales Budget For the Year Ending Dec. 31, 2021 Electronic Typewriters High-speed Printers Units Amount Units Amount Luzon Visayas Mindanao Total

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

Q: Stuart Company

A: Contribution margin is a measure of the amount of revenue left over after subtracting the variable…

Q: Jungling Boot for 2021 assuming no expenditure for advertising: Selling price per unit P10 100,000…

A: Variable expenses vary with production while fixed cost does not. Variable expense per unit remains…

Q: Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells…

A: The objective of the question is to prepare a sales budget for Stillwater Designs for each quarter…

Q: IKIT company produces and sells recliner chairs. IKIT uses an absorption product costing system,…

A: Cost plus pricing is a technique of setting selling price per unit on the basis of adding some…

Q: X corporation produces a decorative pillow. In 2020, it produced 2,000 units a 1,750 at an average…

A: The income statement can be prepared using various methods as variable costing and absorption…

Q: a) Calculate the weighted average unit contribution margin, assuming a constant sales mix. b) How…

A: Table indicating the weights assigned to each product: Resultant table as follows:

Q: (a) Calculate the following: i. Break-even point in packets and value. ii. Total net profit for the…

A: Expected total Sales = 300000 Packets * RM 6 = RM 1800000. Variable Cost :- Cost of Coffee = 300000…

Q: NUBD Inc. manufactures and sells various high-tech office automation products. Two divisions of NUBD…

A: Overall corporate profit increase (decrease) by = (Purchase price - Selling price to outside…

Q: H&M chief demand planner has estimated that 9250,000 units of clothing sold in 2021.H&M cost of…

A: Economic Order Quantity - EOQ helps the company ensure the quantity that needs to order quantity…

Q: 14.7. A company in Calgary serves a market in the northwestern United States. Now it ships LTL at an…

A: Variables in the question:Average cost per unit=$30If the company establishes a distribution…

Q: How would overall corporate profits be affected if it sells 4,000 units to the Computer Division at…

A: Transfer pricing methods are those methods which are used for setting prices for transfer of product…

Q: First, Determine the selling price to retailers in 2020:

A: To determine the selling price to retailers in 2020, we calculated the total cost per unit for…

Q: Coronado Enterprises is a boutique guitar manufacturer. The company produces both acoustic and…

A: A sales budget refers to an estimate prepared to determine the revenue that will be earned in the…

Q: How would overall corporate profits be affected if it sells 4,000 units to the Computer Division at…

A: Transfer pricing methodology is that methodology, which helps in calculation of prices at which…

Q: Security Technology Incorporated (STI) is a manufacturer of an electronic control system used in the…

A: Under a full costing system, fixed and variable costs are simultaneously deducted from sales, and…

Q: During the first calendar quarter of 2016, Clinton Corporation is planning to manufacture a new…

Q: Jules company as we know produces two (2) products, GK320 and GK340. The following sales forecast…

A: Here discuss about the details of the duty of the Management Accountant to produce the information…

Q: International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma.…

A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…

Q: Berring Company produces two products: the deluxe and the standard. The deluxe sells for $40,and the…

A: Budgets are forecasts made at the beginning of the period to determine the estimated sales units…

Q: Security Technology Incorporated (STI) Is a manufacturer of an electronic control system used in the…

A: The solutions are as follows

Q: International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma.…

A: a)

Q: ecided on for the financial year January 1, 2020 to December 31, 2020: Details Q1 Q2 Q3 Q4…

A: Sales budget refers to the type of budget which reflects the estimated and evaluated sum value of…

Q: International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma.…

A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…

Q: A company that manufactures and sells a single product. Unit sales for each of the four quarters of…

A: Net Income=Sales-Total CostsProfit margin=Net IncomeSales×100

Q: ompany as we know produces two (2) products, GK320 and GK340. The following sales forecast for both…

A: The principal budget factor refers to the form of factor that limits or restricts the activities of…

Q: Assume that the operations manager of a small semi-conductor manufacturer wants to run a Simulation…

A: We have to undertake random number based simulation on costs, demand, revenue and profits. The…

Concept explainers

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.

Question

100%

the following sales forecast for the coming year, 2021.
ratio as reflected in the estimates of the sales forecast.
electronic typewriters. The company's market research department prepared
The Sonia Company has two product lines, high-speed printers and
Electronic Typewriters
High-speed Printers
40,000
170,000
10%
25%
P3,000
Sales price per unit
P5,000
The sales force submitted the following estimates:
Electronic Typewriters
High-speed Printers
Luzon
3,600
2,400
Visayas
Mindanao
8,400
3,000
6,000
3,600
Total
15,000
12,000
To establish an acceptable forecast, the budget director averages the two
ostimates. The resulting forecast is then broken down by territories in the same
retio as reflected in the estimates of the sales forecast,
REQUIRED:
1. Prepare a sales budget by sales territory and by product lines for the year
2021. Use the following format:
Sonia Company
Sales Budget
For the Year Ending Dec. 31, 2021
Electronic Typewriters
High-speed Printers
Units
Amount
Units
Amount
Luzon
Visayas
Mindanao
Total

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction :

VIEW

Calculation of acceptable forecast :

VIEW

Calculation of sales estimate for the territories :

VIEW

Sales Budget:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

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.

Similar questions

Bloomberg Enterprises services and repairs TV sets and operates in three regions: Red, White, and Blue. Data for 2020 are as follows in thousands of pesos: Red White Blue Service revenue 4,800 11,200 7,600 Variable cost of service 2,440 4,400 3,400 Variable selling costs 340 660 280 Direct fixed costs: Service 620 1,620 880 Selling 280 800 560 Administrative 640 880 760 Common fixed costs were P900,000 for administration and P220,000 for selling. Required: Prepare a performance report by region, showing contribution margin and regional profit. Show common costs as lump-sum deductions in the total column. Question Why do we need to allocate costs in responsibility centers? What happens if the costs are not allocated?
Newton Cellular ltd. Manufactures and sells the TopLine Cell phone. For its 2021 business plan, Newton Cellular estimated the following: Selling price $750 Variable cost per cell phone $450 Annual fixed costs $180,000 Net (after-tax) income $360,000 Tax rate 25% The March financial statements reported that sales were not meeting expectations. For the first three months of the year, only 400 units had been sold at the established price. With variable costs and fixed costs staying as planned, it was clear that the 2021 after-tax profit projection would not be reached unless some action was taken. A management committee presented the following mutually exclusive alternatives to the president: Reduce the selling price by $80. The sales team forecasts that, with the significantly reduced selling price, 5,000 units can be sold during the remainder of the year. Total fixed…
Ore Company produces bookcases. Sales were good in 2019. However, with the slowdown in the economy, the Chief Financial Officer is concerned about the sales for 2020. The income statement for 2020 is as follows: Sales revenue $600,000 Less: Variable costs $360,000 Contribution margin $240,000 Less: Fixed costs $140,000 Net profit $100,000 The company expects to sell 60,000 units in 2020. Compare different types of cost behaviours to do the following: (a) Use cost-volume-profit analysis to determine the breakeven point in units and in dollars. (b) Use cost-volume-profit analysis to determine the margin of safety in units and in dollars. (c) Assuming that cost behaviour pattern remains unchanged, compute the decrease in net income if sales revenue dropped by $200,000 in 2020.
Wildhorse Enterprises is a portable hot tub manufacturer. The company produces both 2-person and 4-person hot tubs. Chris Anderson, the company's sales manager, prepared the following sales forecast for 2021. The forecasted sales prices include a 5 percent increase in the 2-person spa price and a 10 percent increase in the 4-person spa price, to cover anticipated increases in raw materials prices. 2-person spa 4-person spa (a) on spas: Your answer is partially correct. geted sales price Prepare Wildhorse's sales budget for 2021. geted sales price ✓ il revenue on spas: Sales Price geted sales price geted sales price geted sales price v frevenue V $1,400 $2,700 V 1st Quarter 650 350 LA 1A 1st Quarter 2nd Quarter 910000 490000 1400000 DE 650 Units 250 3rd Quarter 550 250 2nd Quarter 4th Quarter 910000 350000 1260000 750 350 SA 3rd Quarter 1050000 490000 1540000 SA SA SA SA FA 1
Security Technology Incorporated (STI) is a manufacturer of an electronic control system used in the manufacture of certain special- duty auto transmissions used primarily for police and military applications. The part sells for $45 per unit and STI had sales of 24,800 units in the current year, 2021. STI had no inventory on hand at the beginning of 2021 and is projecting sales of 28,400 units in 2022 STI is planning the same production level for 2022 as in 2021, 26,600 units. The variable manufacturing costs for STI are $16, and the variable selling costs are only $0.70 per unit. The fixed manufacturing costs are $133,000 per year, and the fixed selling costs are $660 per year. Required: 1. Prepare an income statement for each year using full costing. 2 Prepare an income statement for each year using variable costing. 3. Prepare a reconciliation of the difference each year in the operating income resulting from the full and variable costing methods.
Answer what is being asked. Show your computation on the space provided. 1. Roxas company sold 23,430 units of product A in 2020 which 10% compared to the units sold in 2019. The products were sold at P300 per unit. Because of heavy advertising and other promotional activities and shift in buyer's preferences, the company expect to increase the sales by 15% in 2021 against the 2020 performance. The company plans to sell the product at P350 per unit. Required: Prepare the sales budget Sales Budget 2021 Estimated Price Selling Units Sales Projected Sales
During the current year, OutlyTech Corp. expected to sell 84 000 telephone switches. Fixed costs for the year were expected to be R16 080 000, the unit sales price was budgeted at R900, and unit variable costs were budgeted at R600. OutlyTech's margin of safety (MOS) in sales Rands is: A. R59 520 000 B. R25 200 000 C. R91 680 000 D. R27 360 000
International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these three products is as follows: Alpha Beta Gamma Total Selling price per unit $250 $400 $1,500 Variable cost per unit $80 $200 $800 Expected unit sales (annual) 12,000 6,000 2,000 20,000 Sales mix 50 percent 40 percent 10 percent 100 percent Total annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levels of sales. Required: a) Calculate the weighted average unit contribution margin, assuming a constant sales mix. b) How many units of each printer must be sold to break even? c) i) Explain what is margin of safety ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are 25,000 units? SHOW YOUR WORKING
Coronado Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Sharon Lee, the company’s sales manager, prepared the following sales forecast for 2022. The forecasted sales prices include a 5% increase in the acoustic guitar price and a 10% increase in the electric guitar price, to cover anticipated increases in raw materials prices. Sales Price 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Acoustic guitar sales $1,250 240 270 310 340 Electric guitar sales $2,100 400 350 320 360 On December 31, 2021, Coronado had 30 acoustic guitars in stock—fewer than the desired inventory level of 96 guitars, based on the following quarter’s sales. The company has budgeted for sales of 240 acoustic guitars in the first quarter of 2023. Prepare the 2022 production budget for acoustic guitars. Production…