Length:1 Excel spreadsheet
Points Possible:
125 Due Date:6/2/2013 11:59:59 PM CT
APA Formatted ReferencesDue: May 13 2:00 a.m.
As the manager of the marketing department, you are being asked for the first
time to develop a department budget. The accounting department has supplied you
with the following projected information about how this year, 20XX, will end up
for your department’s spending.
|
Expense category |
20XX projected |
|
Sales force base salary |
200,000 |
|
Sales force commission |
200,000 |
|
Sales force benefits |
60,000 |
|
Trade show space rental |
50,000 |
|
Free coupon expense |
40,000 |
|
Note: |
|
|
Sales |
2,000,000 |
Before you begin the process, your manager and you have sat down to develop
broad planning objectives for the upcoming year, which you will need to
incorporate into the budget. These include
- a doubling of trade show spending.
- an increase of the sales force by 25%.
- an expected sales volume increase of 10%.
- an expected increase of 4% of all expenses due to inflation.
- no anticipated selling price changes for next year.
You need to do the following:
- for each of the listed expenses:
- identify whether you would treat them as a fixed or variable cost
- explain the reasoning for your classification
- based on the historical information and the planning you did for new
marketing programs for the upcoming year, prepare a budget for the upcoming year
by completing the table:
- In the 20XX+1 column, fill in budgeted figures.
- In the next column, when appropriate, adjust that amount for inflation.
- Complete the next column based on the projected volume increase.
- In the last column, briefly explain how you arrived at the budgeted figure.
|
Expense category |
20XX projected |
20XX+1 with plan changes |
20XX+1 with inflation changes |
20XX+1 with volume impact |
Explanation |
|
Sales force base salary |
200,000 |
||||
|
Sales force commission |
200,000 |
||||
|
Sales force benefits |
60,000 |
||||
|
Trade show space rental |
50,000 |
||||
|
Free coupon expense |
40,000 |
||||
|
Note: |
|||||
|
Sales |
2,000,000 |
2,200,000 |
|
|
|
Please submit your assignment.
The following grading criteria will be used:
|
Grading Guidelines |
|
|
20% |
For each of the listed expenses:
|
|
20% |
In the 20XX+1 column, fill in budgeted figures. |
|
20% |
In the next column, when appropriate, adjust that amount for |
|
20% |
Complete the next column based on the projected volume |
|
20% |
In the last column, briefly explain how you arrived at the budgeted |
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