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Question 1: (Budgeting)

Speedy Cycles makes bikes which currently sell for $110. The business has developed its web page and is trying to expand its customer reach to this form of medium. Sales in dollars for each quarter of 2020 were expected to be as follows:

Quarter Ending	$
31 March	$148,000
30 June	$90,000
30 September	$205,000
31 December	$248,000

Due to the change in sales strategy and other operating conditions, Speedys experienced the following changes to sales volumes (units) from budget for 2020:

Quarter Ending	Expected Change
31 March	Decreased by 5%
30 June	Increased by 5%
30 September	Increased by 10%
31 December	Increased by 15%

Speedy Cyles also increased the selling price to $150 for the last two quarters of 2020.

Required

Prepare the actual sales record for 2020 and indicate whether there was a Favourable or Unfavourable Variation between Sales Budget and Actual Sales:

Speedy Cylces

Actual Sales

For the year ended 31 December 2020

	March	June	September	December
Selling price ($)
Sales (Units)
Sales Revenue ($)

Please help with the above question

Below is one example question with solutions just like the above one:

Part A (20 marks) Kimberley Company makes specially designed coffee mugs. The entity has developed its web page and is trying to switch customer behaviour to this form of medium. Sales in dollars for each quarter of 2011 were as follows: Quarter Ending 31 March $16,000 30 June $14,000 30 September $15,500 31 December $20,000 Due to the change in sales strategy and other operating conditions, Kimberley Company expects the following changes to sales for 2012: Quarter Ending Expected Change 31 March Increase by 20% 30 June Increase by 20% 30 September Increase by 20% 31 December Increase by 20% The unit sales price will be the same as 2011, at $15 per unit. Required Prepare a sales budget for 2012: Kimberley Company Sales Budget For the year ended 31 December 2012 March June September Selling price $15 $15 $15 December $15 Sales (units) 1,280 units 1,120 units 1,240 units 1,600 units Sales $ $19,200 $16,800 18,600 $24,000

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