Sales budgetPataky Co.’s sales manager estimates that 2,000,000 units of product RI#698 will be sold during the year. The product’s selling price is expected to decline as the result of technology changes during the year and estimates of the sales price are as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $17 $16 $14 $12 In talking with customers, the sales department discovered that sales quantities per quarter could vary substantially. Thus, the sales manager has prepared the following three sets of quarterly sales projections: Unit Sales 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Scenario A 600,000 300,000 640,000 460,000 2,000,000 Scenario B 400,000 700,000 250,000 650,000 2,000,000 Scenario C 530,000 480,000 800,000 190,000 2,000,000 If Pataky’s sales department is able to influence customers, what is the total revenue under each scenario?   Total Revenue Scenario A   Scenario B   Scenario C

The company just hired a new marketing manager who insists unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget:                                                                    Year 2 Quarter                 Year 3 Quarter Data                                          1          2          3            4                1           2Budgeted unit sales    45,000    65,000    120,000   65,000     80,000       90,000Selling price per unit    $7                               What are the total expected cash collections for the year under this revised budget?What is the total required production for the year under this revised budget?                                                                What is the total cost of raw materials to be purchased for the year under this revised budget?                                  What are the total expected cash disbursements for raw…

Gibson Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because economic conditions vary in different regions of the country. The growth expectations per quarter are 4 percent for Cummings Division, 2 percent for Springfield Division, and 6 percent for Douglas Division. Required a. Complete the sales budget by filling in the missing amounts. b. Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements. Complete this question by entering your answers in the tabs below. Required A Required B Complete the sales budget by filling in the missing amounts. Note: Round your final answers to the nearest whole dollar amount. Division First Quarter Second Quarter Third Quarter Fourth Quarter Cummings Division $ 160,000 Springfield Division 390,000 Douglas Division 260,000 Required A Required B >

Management is planning to increase menu prices this year by 5 percent in Month 2 and another 3 percent in Month 4. Forecast food sales for months 1-6 this year by using the following historical information:   Month                  Sales Volume Last Year Month 1                               $140,000 Month 2                                 175,000 Month 3                                 190,000 Month 4                                 225,000 Month 5                                 265,000 Month 6                                 310,000

Buffalo Company’s budgeted sales and budgeted cost of goods sold for the coming year are $149,520,000 and $103,320,000, respectively. Short-term interest rates are expected to average 10%. If Buffalo can increase inventory turnover from its present level of 9 times a year to a level of 12 times per year.Compute its expected cost savings for the coming year.

Return on investment, Margin, Turnover Ready Electronics is facing stiff competition from imported goods. Its operating income margin has been declining steadily for the past several years. The company has been forced to lower prices so that it can maintain its market share. The operating results for the past 3 years are as follows. For the coming year, Ready's president plans to install a JIT purchasing and manufacturing system. She estimates  that inventories will be reduced by 70 % during the first year of operations, producing a 20% reduction in the average operating assets of the company, which would remain unchanged without the JIT system.She also estimates that sales and operating income will be restored to Year  1 levels because of simultaneous reductions in operating expenses and selling prices. Lower selling prices will allow Ready to expand its market share.(Note : Round all numbers to two decimal places.) Required : 1. Compute the ROI, margin, and turnover for Years 1, 2…

The consulting company Clark Robinson and Morton CRM is in that never ending budgeting phase of the year. Realizing that they couldn't defer a technology update any longer the managers planned to replace all of the computers in the office. The old computers will be sold for market value. When the new computer has reached the end of their useful lives there will be sold as well. The cost of the combined new computers and annual software update should be more efficiency gains and increased volumes of sales at least that's what the managers are expecting. Information related to this investment is as follows. Cost of no computers $25,400. Salvage value of no computers at end of useful life 2400 dollars. Life of no computers in years five. Market value of all computers today equal to book value 1900 dollars. Annual software update costs necessary for all computers old or $3200. Annual operating cash inflows from efficiency gains and increased sales due to no computers $9600. Minimum…