Moda Market sells high-end fashion accessories for smart phones imported directly from Italy. Moda currently sells products

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Moda Market sells high-end fashion accessories for smart phones imported directly from Italy. Moda currently sells products to fit four popular devices: iPhone 16X, iPhone 16 Pro, Galaxy S33 and Xerio. For each device Moda offers a choice of two cases: costume or jewel encrusted. It is Moda’s first year of operation, and while sales have been steady, Maria (Moda's accountant) is concerned about the impact of a potential interest rate increase in the lead-up to Christmas. She is aware that luxury items are the first things that consumers forego when interest rates increase. Therefore, Maria anticipates that a modest increase in sales units (from the latest quarter) of 5% for the iPhone lines and 2% for the other lines is a realistic target for the last quarter of the year. In addition, Maria has decided to decrease the price on the Xerio accessories due to slow sales. She estimates that a 20% decrease in the sales price of each line may stimulate demand for this product. There is no plan to change the pricing of the other products.

Actual financial data for the first three quarters is shown below.

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Required Prepare a sales budget for Moda’s Market for the fourth quarter (round all calculations to the nearest unit).

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Accounting

ISBN: 9780730382737

11th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie

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