CleanFace Company makes and sells two types of shaving cream: foamy and gel. Last year, foamy cream sold for $2.35 per can, and gel sold for $3.15 per can. Sales volume was as follows: $$\begin{array} { r r r r }
&\text { Quarter 1 } & \text { Quarter 2 } & \text { Quarter 3 } & \text { Quarter 4 } \
\text { Foamy }& 75,000 & 82,000 & 84,000 & 72,000 \
Gel&50,000 & 80,000 & 90,000 & 60,000
\end{array}$$ The company expects sales for foamy cream to increase by 6% in each quarter as long as selling price remains constant. The selling price of will increase to $3.50, but an aggressive advertising is expected to raise volume by 5% in quarters 1 and 4 and by 10% in quarters 2 and 3.
Required:
Prepare a sales budget for the coming year.

Question

CleanFace Company makes and sells two types of shaving cream: foamy and gel. Last year, foamy cream sold for $2.35 per can, and gel sold for $3.15 per can. Sales volume was as follows: $$\begin{array} { r r r r } 
&\text { Quarter 1 } & \text { Quarter 2 } & \text { Quarter 3 } & \text { Quarter 4 } \
\text { Foamy }& 75,000 & 82,000 & 84,000 & 72,000 \
Gel&50,000 & 80,000 & 90,000 & 60,000
\end{array}$$ The company expects sales for foamy cream to increase by 6% in each quarter as long as selling price remains constant. The selling price of will increase to $3.50, but an aggressive advertising is expected to raise volume by 5% in quarters 1 and 4 and by 10% in quarters 2 and 3.
Required:
Prepare a sales budget for the coming year.

Quizplus · Accepted Answer

The Answer of CleanFace Company makes and sells two types of shaving cream: foamy and gel. Last year, foamy cream sold for $2.35 per can, and gel sold for $3.15 per can. Sales volume was as follows: $$\begin{array} { r r r r } 
&\text { Quarter 1 } & \text { Quarter 2 } & \text { Quarter 3 } & \text { Quarter 4 } \
\text { Foamy }& 75,000 & 82,000 & 84,000 & 72,000 \
Gel&50,000 & 80,000 & 90,000 & 60,000
\end{array}$$ The company expects sales for foamy cream to increase by 6% in each quarter as long as selling price remains constant. The selling price of will increase to $3.50, but an aggressive advertising is expected to raise volume by 5% in quarters 1 and 4 and by 10% in quarters 2 and 3.
Required:
Prepare a sales budget for the coming year.

CleanFace Company Makes and Sells Two Types of Shaving Cream