Business, 23.04.2020 15:25 izzybellee20004

"Summer Fun T-Shirt Shop has very seasonal sales. For 2014, management is trying to decide whether to establish a sales budget based on average sales or on sales estimated by quarter. The unit sales for 2014 are expected to be 10 percent higher than 2013 sales. Unit shirt sales by quarter for 2013 were as follows:"

Children's Men's Total
Winter quarter 200 200 100 500
Spring quarter 200 250 200 650
Summer quarter 400 300 200 900
Fall quarter 200 250 100 550
Total 1000 1000 600 2600
Children’s T-shirts sell for $9 each, women’s sell for $13, and men’s sell for $14.

Assuming a 10 percent increase in sales, prepare a sales budget for each quarter of 2014 using the following:

a. Average quarterly sales.
b. Actual quarterly sales.
c. Suggest advantages of each method.

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"Summer Fun T-Shirt Shop has very seasonal sales. For 2014, management is trying to decide whether t...