VIC Medical assembles three products of Alpha 5, Alpha 7 and Beta 5, used in medical devices. It is located in Victoria and sells its products through selected distributors in different Australian cities to hospitals and medical centres. Mary has been hired as a recent Swinburne University graduate to assist Philip, the Factory Manager, to analyse sales data and prepare the 2022 budgets. Philip asked Mary to prepare the sales budget for 2022 based on 2020 sales data as all data has been collected and verified.

Philip provided Mary with the following sales forecasts for 2022. It is expected that selling prices in 2022 will remain the same as 2020.

State	Sales forecast for 2022
	Alpha 5	Alpha 7	Beta 5
Victoria	5% increase from 2020	5% increase from 2020	5% decrease from 2020
New South Wales	13% increase from 2020	15% increase from 2020	1% decrease from 2020
Queensland	5% increase from 2020	4% increase from 2020	The same as 2020
South Australia	6% decrease from 2020	6% decrease from 2020	2% decrease from 2020
Western Australia	The same as 2020	The same as 2020	The same as 2020

Philip also compiled the following data to prepare annual budgets for 2022:

Amount used per unit
Material	Alpha 5	Alpha 7		Beta 5
Electric module	1 unit	1 unit		2 unit
LCD	_	1 unit		1 unit
Power supply	1 unit	1 unit		1 unit
Sensor	2 units	4 units		5 units
Cable A	1 meter	2 meters		4 meters
Cable B	1 meter	3 meters		4 meters
Wi-Fi module	-	-		1 unit
Screw A	20 units	23 units		20 units
Screw B	10 units	20 units		30 units
Washer	10 units	15 units		20 units

Raw material prices and inventory levels:

Material	Anticipated purchase price	Expected inventories 1 January	Desired inventories 31 December
Electric module	$200 per unit	50 unit	100 unit
LCD	$50 per unit	10 unit	100 unit
Power supply	$50 per unit	10 unit	10 unit
Sensor	$10 per unit	100 units	150 units
Cable A	$5 per meter	100 meters	200 meters
Cable B	$7 per meter	100 meters	150 meters
Wi-Fi module	$100 per unit	5 units	10 units
Screw A	$2 per unit	250 units	500 units
Screw B	$3 per unit	300 units	350 units
Washer	$1 per unit	100 units	300 units

Direct labour requirements and rates:

Product	Hours per unit	Rate per hour
Alpha 5	2	$20
Alpha 7	3	$26
Beta 5	5	$35

Finished goods inventories (in units):

Product	Expected 1 January	Desired 31 December
Alpha 5	50 units	100 units
Alpha 7	70 units	100 units
Beta 5	100 units	200 units

Production

Product	Unit price	Unit cost
Alpha 5	600	450
Alpha 7	900	750
Beta 5	1300	1100

Monthly sales quantity

Row Labels	Alpha 5	Alpha 7	Beta 5	Grand Total
Jan	35	66	130	231
Feb	40	67	134	241
Mar	36	77	98	211
Apr	11	72	95	178
May	22	89	120	231
Jun	46	80	112	238
Jul	24	96	135	255
Aug	43	70	96	209
Sep	53	45	127	225
Oct	24	94	115	233
Nov	34	71	119	224
Dec	33	97	109	239
Grand Total	401	924	1390	2715

Sales by state

Sum of Quantity	Column Labels
Row Labels	Alpha 5	Alpha 7	Beta 5	Grand Total
New South Wales	140	288	423	851
Queensland	109	170	274	553
South Australia	9	47	71	127
Victoria	111	347	448	906
Western Australia	32	72	174	278
Grand Total	401	924	1390	2715

Monthly sales by dollars

Row Labels	Alpha 5	Alpha 7	Beta 5	Grand Total
Jan	21000	59400	169000	249400
Feb	24000	60300	174200	258500
Mar	21600	69300	127400	218300
Apr	6600	64800	123500	194900
May	13200	80100	156000	249300
Jun	27600	72000	145600	245200
Jul	14400	86400	175500	276300
Aug	25800	63000	124800	213600
Sep	31800	40500	165100	237400
Oct	14400	84600	149500	248500
Nov	20400	63900	154700	239000
Dec	19800	87300	141700	248800
Grand Total	240600	831600	1807000	2879200

Monthly profit

Row Labels	Total profit
Jan	41150
Feb	42850
Mar	36550
Apr	31450
May	40650
Jun	41300
Jul	45000
Aug	36150
Sep	40100
Oct	40700
Nov	39550
Dec	41300
Grand Total	476750

Prepare sales budget (in units and dollars) (Round up the number of units):

Prepare production budget (in units):

Prepare direct material purchases budget (in quantities)

Prepare direct material purchases budget (in dollars)

Prepare direct labour budget (in hours and dollars):

Answer rating: 100% (QA)

To prepare the sales budget for VIC Medical for 2022 based on the provided sales forecasts and data we need to calculate the projected sales quantities and sales revenues for each product in each stat... View the full answer