Paige Company estimates that unit sales will be 10,100 in quarter 1, 12,200 in quarter 2, 14,700 in quarter 3, and 18,600 in quarter 4. Using a sales price of $83 per unit. Prepare the sales budget by quarters for the year ending December 31, 2020. PAIGE COMPANY Sales Budget choose the accounting period Quarter 1 2 3 4 Year select a sales budget item enter a number of units enter a number of units enter a number of units enter a number of units enter a number of units select a sales budget item $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount select a closing sales budget item $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount

Total Sales Units 55,600

Total Sales Budget 55600*83= $ 4614,800

Explanation:

PAIGE COMPANY

Sales Budget

For the year ending December 31, 2020

                                Quarter 1           2                3                4

Sales units                 10,100         12,200          14,700        18,600            

Sales Price                     $ 83          $ 83             $ 83           $ 83

Sales Budget            $838300  $ 1012600     $1220100      $1543800

As the sales units for each quarter and unit sales price is given we can easily calculate the sales budget by multiplying the units with the units price.

Total Sales Units 55,600

Total Sales Budget 55600*83= $ 4614,800

Similarly the total units can be calculated by adding the units in the quarters and multiplying it with the unit cost will give the total sale budget for the year.

Paige Company's Sales Budget by quarters for the year ending December 31, 2020 will be as follows:

                Quarter 1    Quarter 2Quarter 3  Quarter 4  Year Total

Sales in unit  10,100     12,200         14,700    18,600       55,600

Unit Price$83              $83         $83            $83       $83

Total    $838,300  $1,012,600  $1,220,100  $1,543,800  $4,614,800

Quarter 1 Sales Budget = 10,100 units x $83 = $838,300

Quarter 2 Sales Budget = 12,200 units x $83 = $1,012,600

Quarter 3 Sales Budget = 14,700 units x $83 = $1,220,100

Quarter 4 Sales Budget = 18,600 units x $83 = $1,543,800

Explanation:

A sales budget is an estimate of the volume of sales for a future period.  The sales volume is made up of total units and price.

The sales budget helps management to know how much revenue it can make in a future period and also to plan the resources required to achieve the target.  It sets targets that must be achieved in both quantity and price and forms the basis for planning and controlling sales efforts, and taking decisions to help realise the envisaged estimates.

The year total is a summation of the quarter 1 to 4 totals.

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