Case Study (Page 2)
Production for March will now be the usual monthly production as per February previous page plus the new contract commitment.
Prepare a sales budget for March using a spreadsheet program based on the table provided below:
Product
Units
Unit price ($)
Value ($)
Usual Monthly Production
Basic
150
250
37,500
Standard Plus
250
500
125,000
Deluxe
200
750
150,000
Super Deluxe
100
1000
100,000
Total Monthly Production
700
–
$412,500
Special Order (March)
Basic
30
275
8,250
Standard Plus
50
550
27,500
Deluxe
10
750
7,500
Super Deluxe
5
900
4,500
Total Special Order
95
–
$47,750
Total March Production
795
–
$460,250
Using the information provided, determine the budgeted cost of production (labour, materials and overheads) and the profit per item that can be expected for the normal production and for each item to be produced for the special . What is the total profit expected for March?
Normal Special Order
Basic 40 (250 – 210) 65 (275 – 210)
Standard Plus 80 (500 – 420) 130 (550 – 420)
Deluxe 36 (750 – 714) 36 (750 – 714)
Super Deluxe 107 (1000 – 893) 7 (900 – 893)
PROFIT OVERALL
Normal Special Order
Basic 6,000 1,950
Standard Plus 20,000 6,500
Deluxe 7,200 360
Super Deluxe 10,700 35
Total: $ 43,900 $ 8,845
Total Profit for both Normal and Special Order: $52,745
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