Question: Blue Skies T shirt Company operates a chain of T shirt shops

Blue Skies T-shirt Company operates a chain of T-shirt shops in the northeastern United States.
The sales manager has provided a sales forecast for the coming year, along with the following information:

• Each T-shirt is expected to sell for $20.
• The purchasing manager buys the T-shirts for $8 each.
• The company needs to have enough T-shirts on hand at the end of each quarter to fill
30 percent of the next quarter’s sales demand.
• Selling and administrative expenses are budgeted at $60,000 per quarter plus 15 percent of total sales revenue.

Prepare the following operating budgets for quarters 1, 2, and 3.
O Sales budget
O Merchandise purchases budget
O Cost of goods sold budget
O Selling and administrative expense budget
O Budgeted incomestatement
View Solution:

Sale on SolutionInn
  • CreatedFebruary 27, 2015
  • Files Included
Post your question