Cellular Solutions Inc.had a very successful year in 2013.Based on a $125 average unit selling price,monthly sales during 2013 were as follows:
Mr.James,vice president of sales,is preparing the sales budget for 2014.Increased manufacturing costs will make it necessary to increase the selling price by 12 percent.Even with this price increase,the unit volume of sales is expected to increase by 25 percent.The seasonal sales pattern shown for 2013 is expected to continue in 2014.
a.Prepare the monthly sales unit and dollar budgets for the first quarter of 2014.
b.Mr.Serene is considering the possibility of raising the average selling price by 20 percent in 2014.If this action is taken,he projects that the sales volume for the year will increase by only 10 percent.What would forecasted sales in units and dollars be in 2014 if his projection is correct?

Question

Cellular Solutions Inc.had a very successful year in 2013.Based on a $125 average unit selling price,monthly sales during 2013 were as follows:
 Mr.James,vice president of sales,is preparing the sales budget for 2014.Increased manufacturing costs will make it necessary to increase the selling price by 12 percent.Even with this price increase,the unit volume of sales is expected to increase by 25 percent.The seasonal sales pattern shown for 2013 is expected to continue in 2014.
a.Prepare the monthly sales unit and dollar budgets for the first quarter of 2014.
b.Mr.Serene is considering the possibility of raising the average selling price by 20 percent in 2014.If this action is taken,he projects that the sales volume for the year will increase by only 10 percent.What would forecasted sales in units and dollars be in 2014 if his projection is correct?

Quizplus · Accepted Answer

The Answer of Cellular Solutions Inc.had a very successful year in 2013.Based on a $125 average unit selling price,monthly sales during 2013 were as follows:
 Mr.James,vice president of sales,is preparing the sales budget for 2014.Increased manufacturing costs will make it necessary to increase the selling price by 12 percent.Even with this price increase,the unit volume of sales is expected to increase by 25 percent.The seasonal sales pattern shown for 2013 is expected to continue in 2014.
a.Prepare the monthly sales unit and dollar budgets for the first quarter of 2014.
b.Mr.Serene is considering the possibility of raising the average selling price by 20 percent in 2014.If this action is taken,he projects that the sales volume for the year will increase by only 10 percent.What would forecasted sales in units and dollars be in 2014 if his projection is correct?