If this action is taken he projects that the sales volume

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A company had a very successful year in 2013. Based on a $200 average unit selling price, monthly sales during 2013 were as follows: January $ 65,000 February 50,000 March 90,000 April 140,000 May 50,000 June 40,000 July 30,000 August 75,000 September 55,000 October 85,000 November 25,000 December 40,000 Total $745,000 The sales budget for 2014 is being prepared. Increased manufacturing costs will make it necessary to increase the selling price by 15 percent. Even with this price increase, the unit volume of sales is expected to increase by 20 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. Management is considering the possibility of raising the average selling price by 25 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 the projection is correct?

Reference no: EM13577159

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