Video-Forward, Inc., designs and manufactures wearable video cameras. Models A-1, A-2, and A-3 are lightweight video...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Video-Forward, Inc., designs and manufactures wearable video cameras. Models A-1, A-2, and A-3 are lightweight video cameras that can be used on arms and headbands. Models A-4 and A-5 have larger memory, better resolution, and more Wi-Fi-related features. It is now early January and Video-Forward's budgeting team is finalizing the sales budget for this year. Sales in units and in dollars for last year were as follows: Model Price Revenue $ A-1 A-2 A-3 A-4 A-5 Number Sold 19,000 39,000 57,000 100 12,000 140 3,000 240 70 80 $1,330,000 3,120,000 5,700,000 1,680,000 720,000 $12,550,000 In looking over the last year's sales figures, Video-Forward's sales budgeting team recalled the following: a. Model A-1 costs were rising faster than the price could rise. Preparatory to phasing out this model, Video- Forward, Inc., planned to slash advertising for this model and raise its price by 20 percent. The number of units of Model A-1 to be sold was forecast to be 50 percent of last year's units. b. Model A-5 was introduced on November 1 of last year. It contains a built-in 20 GB hard drive and can be synchronized with several popular music software programs. Video-Forward brought out this model to match competitors' video cameras, but the price is so much higher than other Video-Forward products, that sales have been disappointing. The company plans to discontinue this model on June 30 of this year, and thinks that monthly sales will remain at last year's level if the sales price remains unchanged. c. Video-Forward plans to introduce Model A-6 on July 1 of this year. It will be a high-end player that will be lighter and more versatile than Model A-5 (which it will replace). The target price for this model is $185; unit sales are estimated to equal 3,000 per month. d. A competitor has announced plans to introduce an improved version of Model A-3. Video-Forward believes that the Model A-3 price must be cut 15 percent to maintain unit sales at last year's level. e. It was assumed that unit sales of all other models would increase by 10 percent, prices remaining constant. Required: Prepare a sales forecast by product and in total for Video-Forward, Inc., for this year. Video-Forward, Inc. Sales Budget For This Year Units Price Model A-1 A-2 A-3 A-4 A-5 A-6 Total Total Sales Video-Forward, Inc., designs and manufactures wearable video cameras. Models A-1, A-2, and A-3 are lightweight video cameras that can be used on arms and headbands. Models A-4 and A-5 have larger memory, better resolution, and more Wi-Fi-related features. It is now early January and Video-Forward's budgeting team is finalizing the sales budget for this year. Sales in units and in dollars for last year were as follows: Model Price Revenue $ A-1 A-2 A-3 A-4 A-5 Number Sold 19,000 39,000 57,000 100 12,000 140 3,000 240 70 80 $1,330,000 3,120,000 5,700,000 1,680,000 720,000 $12,550,000 In looking over the last year's sales figures, Video-Forward's sales budgeting team recalled the following: a. Model A-1 costs were rising faster than the price could rise. Preparatory to phasing out this model, Video- Forward, Inc., planned to slash advertising for this model and raise its price by 20 percent. The number of units of Model A-1 to be sold was forecast to be 50 percent of last year's units. b. Model A-5 was introduced on November 1 of last year. It contains a built-in 20 GB hard drive and can be synchronized with several popular music software programs. Video-Forward brought out this model to match competitors' video cameras, but the price is so much higher than other Video-Forward products, that sales have been disappointing. The company plans to discontinue this model on June 30 of this year, and thinks that monthly sales will remain at last year's level if the sales price remains unchanged. c. Video-Forward plans to introduce Model A-6 on July 1 of this year. It will be a high-end player that will be lighter and more versatile than Model A-5 (which it will replace). The target price for this model is $185; unit sales are estimated to equal 3,000 per month. d. A competitor has announced plans to introduce an improved version of Model A-3. Video-Forward believes that the Model A-3 price must be cut 15 percent to maintain unit sales at last year's level. e. It was assumed that unit sales of all other models would increase by 10 percent, prices remaining constant. Required: Prepare a sales forecast by product and in total for Video-Forward, Inc., for this year. Video-Forward, Inc. Sales Budget For This Year Units Price Model A-1 A-2 A-3 A-4 A-5 A-6 Total Total Sales
Expert Answer:
Answer rating: 100% (QA)
Based on the information provided from the sales budgeting team we can prepare a sales forecast for each model for the upcoming fiscal year I will go ... View the full answer
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
Posted Date:
Students also viewed these general management questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Audio-2-Go, Inc., manufactures MP3 players. Models A-1, A-2, and A-3 are small and light. They are attached to armbands and use flash memory. Models A-4 and A-5 are somewhat larger and use a built-in...
-
How do stakeholders impact the uncertainty in a project?
-
You want to conduct a survey to determine the proportion of people who favor a proposed tax policy. How does increasing the sample size affect the size of the margin of error?
-
A plant is proposing to install a combined heat and power system to supply electrical power and process steam. Power is currently taken from a utility company, and steam is generated using onsite...
-
For many years, hitters have claimed that some baseball pitchers have the ability to actually throw a rising fastball. Assuming that a top major leaguer pitcher can throw a \(95-\mathrm{mph}\) pitch...
-
Eloisa Corporation applies IFRS. Information about Eloisa Corporation's income before income tax of $633,000 for its year ended December 31, 2017 includes the following: 1. CCA reported on the 2017...
-
The growth rate for the firm's common stock is 7%. The firm's preferred stock is paying an annual dividend of $5. What is the preferred stock price if the required rate of return is 8%?
-
The flowchart below shows the August production activity of the punching and bending departments of Wire Box Company. Use the amounts shown on the flowchart to compute the missing numbers identified...
-
Calculate the cost of not taking the following discounts for prompt payment. (Use a 360-day year. Do not round intermediate estimates. Enter your final answers as a percentage rounded to 2 decimal...
-
Jane moved to Toronto in December of the current year. However, Jane cannot deduct her eligible moving expenses in the current year because. Jane moved from Edmonton to Toronto for employment...
-
How do advancements in thermal imaging, infrared thermography, and thermal sensing technologies enable real-time monitoring and predictive maintenance of critical infrastructure, industrial...
-
Why is there an increase or decrease in the book value over the fair value in the notes payable account?
-
Direct materials $ 2 0 , 0 0 0 $ 1 1 , 5 0 0 Direct labor cost $ 2 6 , 6 0 0 $ 1 0 , 3 0 0 Actual machine - hours used: Molding 2 , 4 0 0 1 , 5 0 0 Fabrication 1 , 3 0 0 1 , 6 0 0 Total 3 , 7 0 0 3 ,...
-
Provide a brief paragraph argument in affirmation of the topic; it is better to protect privacy over security and include at least one source found using resources available online.
-
Post Inc. acquired at book value 80% of the voting shares of Scrip Inc. on January 1, 2020, when Scrip reported common stock of $600,000 and retained earnings of $200,000. On that date, the fair...
-
The tractor is used to lift the 150-kg load B with the 24-mlong rope, boom, and pulley system. If the tractor travels to the right at a constant speed of 4 m/s, determine the tension in the rope when...
-
A corporation issues 7% bonds as well as preferred shares with an annual 5.5% dividend rate. Excluding the risk factor, what type of investor would prefer the bond and what type would prefer the...
-
The Canadian income tax system includes five specific categories of income. Identify the income category to which each of the following pertains: 1. Interest earned on a bond investment. 2. Pension...
-
Gold Corp., a Canadian public corporation, carries on business in Canada. For the current year, Gold Corp. has manufacturing and processing profits (M&P) of $300,000, calculated in accordance with...
-
LDDS continued to publicly report increasing profits and sales in the financial statements, which allowed it to acquire more companies with no limit to the growth of its stock price. True/False
-
LDDS suffered from high fixed costs coupled with a lack of technical knowledge and expertise in optimizing the configuration of circuits, which resulted in high line costs. True/False
-
WorldCom overstated its earnings by improper accounting for multiple element contracts. True/False
Study smarter with the SolutionInn App