Freshaire, Inc., produces two types of air fresheners: Mint Freshener and Lemon Freshener. Both products are sold in 32-ounce bottles. Mint sells for $3.00 per bottle, and Lemon sells for $3.50 per bottle. Projected sales (in bottles) for the coming four quarters are as follows:
| |
Mint |
Lemon |
|
First quarter, 2008
|
80,000
|
100,000
|
|
Second quarter, 2008
|
110,000
|
100,000
|
|
Third quarter, 2008
|
124,000
|
120,000
|
|
Fourth quarter, 2008
|
140,000
|
140,000
|
|
First quarter, 2009
|
90,000
|
110,000
|
The vice president of sales believes that the projected sales are realistic and can be achieved by the company.
Required
1. Prepare a sales budget for each quarter of 2008 and for the year in total. Show sales by product and in total for each time period.
2. How will Freshaire, Inc., use this sales budget?