Boyles Ltd. is doing a sales budget for the next 12 months. Use the following info and classic budgeting techniques.

What should the total sales budget be for the next 12 months?

 

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Sales for the last 12 months were €68,300,000. There was a sales price increase at the start of Quarter 3 of last year of 10%. The last 12 months included the discontinuation of production of an old product "Relic" which totalled sales of €2,000,000 in that year. Conundrum continues to hold some stock which it believes it can sell entirely next year for a total of €240,000. The Sales manager added 4 new salespeople at the end of quarter 3 last year - they were not involved in the sales of "Relic". The estimated impact on sales of all products excluding Relic, was an increase of 20% in Quarter 4 compared to Quarter 3. The sales manager is planning to make a further 4 hires at the start of Quarter 3 next year, and estimates they will increase sales by 15% for the second half of the year compared to the first half (these estimates exclude "Relic"). The sales price is expected to increase by 5% at the start of Quarter 4 next year. Sales for the last 12 months were €68,300,000. There was a sales price increase at the start of Quarter 3 of last year of 10%. The last 12 months included the discontinuation of production of an old product "Relic" which totalled sales of €2,000,000 in that year. Conundrum continues to hold some stock which it believes it can sell entirely next year for a total of €240,000. The Sales manager added 4 new salespeople at the end of quarter 3 last year - they were not involved in the sales of "Relic". The estimated impact on sales of all products excluding Relic, was an increase of 20% in Quarter 4 compared to Quarter 3. The sales manager is planning to make a further 4 hires at the start of Quarter 3 next year, and estimates they will increase sales by 15% for the second half of the year compared to the first half (these estimates exclude "Relic"). The sales price is expected to increase by 5% at the start of Quarter 4 next year.

Answer rating: 100% (QA)

A Sale of last year 683 Mn Assume sales of quarter 1 of last year is X Then sales of quarter 2 of ... View the full answer