Business, 02.08.2020 01:01 china1283

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 1 260 64 Desired inventory (units), June 30 299 56 Expected sales volume (units): Midwest Region 3,650 3,200 South Region 4,900 4,250 Unit sales price $135 $210 a. Prepare a sales budget.

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Answer from: graceaowen

Sonic Inc.

a) Sales Budget:

Rumble Thunder

Total units sold 8,550 7,450

Unit sales price $135 $210

Sales value $1,154,250 $1,564,500

b) Production Budget:

Rumble Thunder

Total units sold 8,550 7,450

Desired inventory (units), June 30 299 56

Estimated inventory (units), June 1 260 64

Units to be produced 8,589 7,442

Explanation:

a) Data and Calculations:

Rumble Thunder

Total units sold 8,550 7,450

Desired inventory (units), June 30 299 56

Estimated inventory (units), June 1 260 64

Units Produced 8,589 7,442

Rumble Thunder

Expected sales volume (units):

Midwest Region 3,650 3,200

South Region 4,900 4,250

Total units sold 8,550 7,450

Unit sales price $135 $210

a) The Sonic Inc.'s sales budget determines the production budget. When the quantity to be sold is obtained, then production planning can take place based on meeting customers' demand for goods or services.

b) The Production budget is a bye-product of the sales budget, though, it is critical in the whole value chain. It is the production budget that guides production planning, including the type, design, and other features of the product.

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Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following productio...

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