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Harveys Budget1. Sales BudgetSales BudgetFor the Year Ending December 31, 2013SalePricePerUnitScrewdrivers $100Saws$125TotalMonthlyUnitsValue$QuarterlyUnitsValue$60,00040,000180,000 18,000,000120,000 15,000,00033,000,0006,000,0005,000,00011,000,000UnitsAnnuallyValue$720,000480,00072,000,00060,000,000132,000,0002.The sales budget is an estimate of units of product or products the organizationexpects to sell times the expected sales price per unit. It is based on businessstrategic plan, past experience, estimates of general business and economicconditions and expected levels of competition. This is the most important budgetas it drives most of the other budgets. For example, the production budget andrelated materials, labor and overhead budgets are based on sales.According to Mr. Lipscomb, the budgeted monthly sales of screwdrivers 64,000with selling price $102and saws 42,000 units with selling price $130 should beadopted for the future budget. His recommendations are based on the peakmonth sales may, June and July with highest selling price that could be achievedin 2012.But I do not agree with Mr.Lipscombs recommendations for budget. He isoptimistic about it.Sales budget is based on analysis of past sales and present market. I also usethese bases and concluded that average sales and average unit price are the bestoption to determine the future budget, 2013.Because if we take monthlybudgeted sales 64,000 screw ...


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