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Freshaire, Inc., produces two types of air fresheners: Mint Freshener and Lemon Freshener. Both products are sold in 32-ounce bottles. Mint sells for $3.00 per bottle, and Lemon sells for $3.50 per bottle. Projected sales (in bottles) for the coming four quarters are as follows:
First quarter, 2008
80,000
100,000
Second quarter, 2008
110,000
Third quarter, 2008
124,000
120,000
Fourth quarter, 2008
140,000
First quarter, 2009
90,000
The vice president of sales believes that the projected sales are realistic and can be achieved by the company.
1. Prepare a sales budget for each quarter of 2008 and for the year in total. Show sales by product and in total for each time period.
2. How will Freshaire, Inc., use this sales budget?
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