Direct Marketing Budgeting

Budget Planner?

Hirsch Industries has sales in 2005 of $ 5,250,000 (750,000 units) and a gross profit of $ 1,587,500. Management is considering two alternative budget plans to increase its gross profit in 2006. Plan A, the increase in price per unit venda $ 7.60 to $ 7.00. The turnover be reduced by 10% of its 2005 level. Plan B could reduce the price per unit of venda of 5%. The marketing department expects the sales volume would increase to 100,000 units. In late 2005, Hirsch has 75,000 units on hand. If the plan is accepted, the final 2006 inventory must be equal to 90,000 units. If we accept Plan B, the final inventory must be equal to 100,000 units. Each unit produced in direct material cost $ 2.00, $ 1.50 in direct labor, and $ 0.50 in indirect costs variable. Overheads set for 2006 should be $ 965,000. HOW TO RESOLVE UNIT SALES EXPECTED FOR A PLAN OF

Data is not enough. We do not have the price on the basis that you provide the sales figures and gross profit. OK, if whenever the royal units sold, could have been discovered something. Sorry, insufficient data.

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