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a Sales Budget with monthly detail and totals for the month and year using the following assumptions: You have 3 salesmen.Salesman #1 and #2 will...

1.  a Sales Budget with monthly detail and totals for the month and year using the following assumptions:

·        You have 3 salesmen. Salesman #1 and #2 will sell 125 units each month. Salesman #3 does not start with the company until July. His sales volume for July to December is 25, 50, 75, 100, 100, and 100 units.

·        Your product is to be sold at $375 per unit.


From your sales budget, what is your total budget revenue?

2.    a Cost of Goods Sold Budget with monthly detail and totals for the month and year using the following assumptions:

·        Your units sold from the Sales Budget

·        Your cost per unit sold is $165 each month all year long.

From the Cost of Goods Sold Budget, what is your total Cost of Goods Sold for the Year?



3.   The Operating Expense Budget with monthly detail and total for the month and year using the following assumptions:

·        Rent Expense is $10,000 per month based upon the lease with the company's landlord.

·        Utilities Expense is expected to be the same as last year. The average month last year was $1,750.

·        Payroll Expense will be $27,000 a month through June, but beginning in July it will be $2,000 higher reflecting the addition to the payroll of Salesman #3

·        Travel Costs Expense is projected at $1,000 per Salesman per month.

·        Vehicle Gas / Repairs Expense is expected to be equal to last year. The average month last year was $500

·        Miscellaneous Expense is projected at 1% of Revenue.

From the Operating Expense Budget, what is your Total Operating Expenses budgeted?


4.   The summary of the Sales, COGS and Operating Expense with monthly detail with totals for each month and year.  Format of the summary is:

Revenue

Cost of Goods Sold

Gross Profit (= Revenue - COGS)

Operating Expenses

Earnings Before Interest and Taxes ( = Gross Profit - Operating Expenses)


From your summary budget, what is your budgeted Earnings Before Interest and Taxes?

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