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
Chapter2: Building Blocks Of Managerial Accounting
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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.
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Transcribed Image Text: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
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