AE10-6 Sales Budget for Service Company [LO 2] Oregon Adventures provides tours

ID: 2350772 • Letter: A

Question

AE10-6

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 7,000
Fourth quarter 9,000

Assume that sales for each quarter in 2012 will be 30 percent higher than they were in 2011 and the price per tour is $69. Prepare a sales budget by quarter for 2012.

Oregon Adventures
Sales Budget
For the Year Ending December 31, 2012

First Second Third Fourth
Quarter Quarter Quarter Quarter Year

Projected sales
Sales price per unit $_ $ _ $ _ $ _ $_

Budgeted revenue for 2012 $_ $ _ $_ $_ $_

Explanation / Answer

Oregon Adventures
Sales Budget
For the Year Ending December 31, 2012

1st Quarter

2nd quarter

3rd quarter

4th quarter

Total

Projected sales

7800

9100

11700

37700

Sales price per unit

$69

Budgeted Revenue

$538,200

$627,900

$807,300

$2,601,300