Question

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 284 79 Desired inventory (units), June 30 327 69 Expected sales volume (units): Midwest Region 4,300 4,800 South Region 5,050 4,400 Unit sales price $95 $225

Answer 1

Sonic Inc.

a. Sales Budget for the month of June:

Rumble Thunder Total

Midwest Region 4,300 4,800 9,100

South Region 5,050 4,400 9,450

Total units sold 9,350 9,200 18,550

Sales price $95 $225

Expected Sales Revenue $888,250 $2,070,000 $2,958,250

b. Production Budget for the month of June:

Rumble Thunder Total

Desired inventory (units), June 30 327 69 396

Total units sold 9,350 9,200 18,550

Total units available for sale 10,287 9,269 19,556

Estimated inventory (units), June 1 284 79 363

Units to be produced 10,003 9,190 19,193

Step-by-step explanation:

a) Data and Calculations:

Rumble Thunder

Estimated inventory (units), June 1 284 79

Desired inventory (units), June 30 327 69

Expected sales volume (units):

Midwest Region 4,300 4,800

South Region 5,050 4,400

Unit sales price $95 $225