Reference no: EM13949248
Swasey, Inc. manufactures six models of leaf blowers and weed eaters. Swasey's budgeting team is finalizing the sales budget for the coming year. Sales in units and dollars for last year follow:
| Product |
Number Sold |
Price |
Revenue |
|
LB-1
|
16,800
|
$29
|
$ 487,200
|
|
LB-2
|
18,000
|
15
|
270,000
|
|
WE-6
|
25,200
|
13
|
327,600
|
|
WE-7
|
16,200
|
10
|
162,000
|
|
WE-8
|
2,400
|
22
|
52,800
|
|
WE-9
|
1,000
|
26
|
26,000
|
|
Total
|
|
|
$1,325,600
|
In looking over the previous year's sales figures, Swasey's sales budgeting team recalled the following:
a. Model LB-1 is a newer version of the leaf blower with a gasoline engine. The LB-1 is mounted on wheels, instead of being carried. This model is designed for the commercial market, and did better than expected its first year. As a result, the number of units of model LB-1 to be sold were forecast at 200 percent of the previous year's units. The price for the coming year was also increased by $1 per unit.
b. Models WE-8 and WE-9 were introduced on October 1 last year. They are lighter versions of the traditional weed eater, and designed for smaller households or condo units. Swasey estimates that demand for both models will continue at the previous year's rate.
c. A competitor has announced plans to introduce an improved version of model WE-6, Swasey's traditional weed eater. Swasey believes that the model WE-6 price must be cut 20 percent to maintain unit sales at the previous year's level.
d. It was assumed that unit sales of all other models would increase by 20 percent, prices remaining constant.
Required
Prepare a sales budget by product and in total for Swasey, Inc. for the coming year.
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