Question

Part A   

Speedy Cycle Bikes makes adult bikes which currently sell for $110 each. The entity has developed its web page and is trying to expand customer reach to this form of medium. Sales in dollars for each quarter of 2019 were as follows:

Quarter Ending	$
31 March	$158,000
30 June	$118,000
30 September	$185,000
31 December	$223,000

Due to the change in sales strategy and other operating conditions, Darren expects the following changes to sales volumes (units) for 2020:

Quarter Ending	Expected Change
31 March	Decrease by 5%
30 June	Increase by 5%
30 September	Increase by 10%
31 December	Increase by 15%

Darren also believes that the selling price should increase to $145 for the last two quarters of 2020.

Required

Prepare a sales budget for 2020:

Speedy Cycle Bikes

Sales Budget

For the year ended 31 December 2020

	March	June	September	December
Selling Price ($)
Sales (Units)
Sales Revenue ($)

Answer 1