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Exercise 10-6 Sales Budget for Service Company

Exercise 10-6 Sales Budget for Service Company
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ACCOUNTING

MT425 / MT 425
Managerial Finance and Accounting
Kaplan University (KU Campus)

James Jiambalvo
Managerial Accounting, 4e
Hoboken, NJ: John Wiley & Sons.

Unit 8: Budgets and Performance Evaluation

Chapter 10 Exercise 10-6 Sales Budget for Service Company [LO 2] Oregon Adventures provides tours of scenic locations in Oregon. The company expects tours taken to increase dramatically compared with the prior year.
For the past year, 2011, the number of tours given were as follows:
First quarter 6,000
Second quarter 7,000
Third quarter 10,000
Fourth quarter 9,000

Required
Assume that sales for each quarter in 2012 will be 30 percent higher than they were in 2011 and the price per tour is $80. Prepare a sales budget by quarter for 2012.

 

FILE: MS WORD

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