January
February
March
April
Units
70,000
65,000
100,000
120,000
Unit Selling Price
$9.50
$9.50
$9.50
$9.50
Sales
$665,000.00
$617,500.00
$950,000.00
$1,140,000.00
Match Balls
January
February
March
April
Units
10,000
8,000
15,000
25,000
Unit Selling Price
$18.00
$18.00
$18.00
$18.00
Sales
$180,000.00
$144,000.00
$270,000.00
$450,000.00
Total Sales
$845,000.00
$761,500.00
$1,220,000.00
$1,590,000.00
2)
Training Balls
January
February
March
April
Units
70,000
65,000
100,000
120,000
Unit Selling Price
$9.50
$9.50
$9.50
$9.50
Sales
$665,000.00
$617,500.00
$950,000.00
$1,140,000.00
Match Balls
January
February
March
April
Units
10,000
8,000
15,000
25,000
Unit Selling Price
$18.00
$18.00
$18.00
$18.00
Sales
$180,000.00
$144,000.00
$270,000.00
$450,000.00
Soccer Balls
January
February
March
April
Units
4000
3200
6000
10000
Unit Selling Price
$40.00
$40.00
$40.00
$40.00
Sales
$160,000.00
$128,000.00
$240,000.00
$400,000.00
Total Sales
$1,005,000.00
$889,500.00
$1,460,000.00
$1,990,000.00
E 8-8
1)
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
Budgeted Unit Sales
5,000
15,000
40,000
35,000
95,000
Unit Variable Marketing Expense
0.45
0.45
0.45
0.45
0.45
Total Variable marketing Expense
2250
6750
18000
15750
42750
Fixed Marketing Expense:
Internet Banner Ads
7,600
7,600
7,600
7,600
30,400
TV Time
10,000
10,000
10,000
10,000
40,000
Telephone Operator time
4,000
4,000
4,000
4,000
16,000
Travel
3,000
3,000
3,000
3,000
12,000
Total Fixed Expense
24,600
24,600
24,600
24,600
98,400
Total Marketing Expense
26,850
31,350
42,600
40,350
141,150
One time cost
65,000
76,150
2)
If the cost of television time rises to $15,000 in quarters 2 through 4, total fixed expense will increase to become $29,600. Variable marketing expense will be unaffected. Total marketing expense will increase to $36,350 in quarter 2, $47,600 in quarter 3, and $45,350 in quarter 4.
