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Melody Audio Company manufactures two models of speakers, DL &XL. Based on the f

ID: 2433837 • Letter: M

Question

Melody Audio Company manufactures two models of speakers, DL &XL. Based on the following production and sales data for September2007.

Prepare...
(a) a Sales Budget
(b) a Production Budget

                                                                           DL         XL
Estimated Inventory (units), September1              380             140
Desired Inventory (units), September30                450             110
Expected Sales Volume (units):
     EastRegion                                                  4,400          3,200
     WestRegion                                                 2,900          2,100
Unit SalesPrice                                               $120.00      $170.00

Explanation / Answer

Product DL

Product XL

4,400

3,200

2,900

2,100

7,300

5,300

$120.00

$170.00

$876,000

$901,000

Product DL

Product XL

4,400

3,200

2,900

2,100

7,300

5,300

+450

+110

-380

-140

8,130

5,270

Product DL

Product XL

Expected Sales Volume(units)    East Region

4,400

3,200

   West Region

2,900

2,100

Total Sales Volume (units)

7,300

5,300

Unit Sales Price

$120.00

$170.00

Expected Sales

$876,000

$901,000