Ch08HW_E811_E812_P813

Ch08HW_E811_E812_P813 - CHAPTER 8 BUDGETING FOR PLANNING...

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CHAPTER 8 BUDGETING FOR PLANNING AND CONTROL E8–11 1. Sales revenue: Pessimistic Expected Optimistic Sleepeze. ............................ $2,250,000 $ 3,000,000 $ 3,600,000 Plushette. ........................... 3,000,000 4,200,000 5,040,000 Ultima. ................................ 1,800,000 5,000,000 6,000,000 Total sales. ................... $ 7,050,000 $ 12,200,000 $ 14,640,000 2. Pessimistic Expected Optimistic Salaries. .............................. $ 130,000 $ 130,000 $ 130,000 Depreciation. ..................... 20,000 20,000 20,000 ... 21,000 21,000 21,000 Advertising: . 20,000 20,000 20,000 Ultima. ........................... 90 ,000 250 ,000 300 ,000 Commissions. .................... 157 ,500 216 ,000 259 , 2 00 Shipping: Sleepeze. ...................... 625,000 750,000 900,000 Plushette. ...................... 500,000 600,000 700,000 Ultima. ........................... 150,000 375,000 375,000 Total. ................................... $ 1, 713 ,500 $ 2 , 382 ,000 $ 2 , 725 , 2 00 E8–12 1. Activity-based budget: Research: Salary. ..................................... $ 30,000 Internet connection. .............. 1,920 $ 31,920 Shipping: Salaries. .................................. $ 24,500 Telephone. .............................. 2,500 Ship sleepeze. ........................ 750,000 Ship plushette. ....................... 600,000 Ship ultima. ............................ 375,000 1,752,000 Jobbers: Salaries. .................................. $ 18,750 Telephone. .............................. 2,500 Commissions. ........................ 216 ,000 237 ,250 Basic ads: Salaries. .................................. $ 16,000 1
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Advertising. ............................ 20,000 36,000 Ultima ads: Salaries. .................................. $ 20,750 Advertising. ............................ 250 ,000 270 ,750 Manage office: Salaries. .................................. $ 20,000 Depreciation. .......................... 20,000 Internet. .................................. 480 Other office supplies. ........... 13,600 54,080 Total. ............................................ $ 2 , 382 ,000 2. Clearly, shipping is the most costly activity, followed by ultima advertising and commissions to jobbers. It would be worthwhile to investigate shipping
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This note was uploaded on 11/14/2009 for the course ACC 2338 taught by Professor Tba during the Fall '09 term at Randolph College.

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Ch08HW_E811_E812_P813 - CHAPTER 8 BUDGETING FOR PLANNING...

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