Assessment 2: Tutorial Exercise One: Sales Budget

Due Date: 20 April 2021

Value: 20%
Length: Approx. 3 Hours

Instructions

Style & Format

Tutorial Exercise Task One must be word-processed, not hand written, word size 12 with ‘Times
New Roman’ font type and 1.5 spacing. Table and graphs should be accurately formatted and one
must show all related workings. (HINT: Follow the Marking criteria as it is how your answer will
be marked)

Please list any references (books, articles, web-based material) you use at the end of your
assignment in alphabetical order, using the referencing style seen in academic articles (i.e. within
text references and bibliography, as in the Harvard referencing style). The Tutorial Exercise Task
One must contain the following:-
a. Cover Page (Moodle)
b. Table of Content
c. Body/Content (answers to the assessment tasks)
d. Reference

Submission
Tutorial Exercise Task One should be uploaded on to the Moodle before the due date. Document
should be uploaded in Microsoft Word Format or Excel Format. Softcopy must have accurate
file name; it must have the student ID number and assessment it corresponds to. For example, if
your student ID is s11065736; your filename must be “s11065736_TutorialExerciseOne”.

NOTE: The table and solution should not be in Picture Format. If the solution contains Picture
Format Tables for solution, straight 10 marks will be deducted or ZERO will be awarded.

Late Assignment submission will not be marked unless prior arrangement has been made with
the Course Coordinator. If late assessment is marked then the penalty of 10% per day applies.
Assignment submitted after solution has been uploaded will neither be accepted nor marked.
Questions

Part A
Waterlicious Limited provides the following sales data for the quarter ending 31 December 2020.

Product Price ($) Oct’20 (Qty) Nov’20 (Qty) Dec’20 (Qty)

500mL water bottle 0.75 4,200 4,400 4,400
1L water bottle 1.25 1,250 1,400 1,200
1.5L water bottle 1.50 1,650 1,600 1,550

To boost sales of the 1L water bottles, marketing team decided to discount the price by 10% for the month
of January 2021 only.

The CFO for the company states that there is not enough profit margin on the 500mL bottle. It is decided
to increase the price to $1.00 starting from February 2021.

A new plastic bottle levy is to be implemented from March 2020. Compared to February 2021 prices,
prices will increase by 10% for all products.

The forecast budget for the next 3 months of sales volume is as follows:

Product Jan’21 (Qty) Feb’21 (Qty) Mar’21 (Qty)

500mL water bottle +5% -10% -10%
1L water bottle +15% -10% -12%
1.5L water bottle 0% +5% -15%

Note: the forecast budget for each month is based on the previous month’s sale. Eg. January 2021 forecast
is based on December 2020, while February 2021 forecast is based on January 2021.

Required:
a) What are the product sales in dollars for each of the months from October to December 2020?

b) What is the forecast product sales prices for each of the months from January 2021 to March
2021?

c) Prepare the quantity sales budget for the March 2021 quarter.

d) Prepare the dollar sales budget for the March 2021 quarter.
Part B
Pretty Me Limited is a beauty therapy company which specializes in beauty care services. The firm employs
10 beauticians who work throughout the year but are given 10 days of annual leave, and 10 days of sick
leave. Staff work 8 hours a day, 5 days a week.

Pretty Me offers the following services: pedicure, manicure and facial.

Pedicure takes 1 hour and is charged at $20 an hour. Manicure takes 2 hours and is charged at $25 an
hour. Facial takes 3 hours and is charged at $30 an hour. There is also a combo deal of all three services
together which takes 5 hours and the total charge is $160.

The beauticians spend 20% time performing pedicures, 30% time performing manicures, 40% time
performing facials and the rest is spent on Combo deals.

Required:
a) Calculate the total annual hours spent performing each type of service.

b) How many of each type of service are currently been performed?

c) How much does the firm charge per service?

d) How much revenue is earned annually in each service and in total?

e) The following year, it is forecasted to employ an additional 5 beauticians and operate 6 days a
week. Further, the price for Combo deal is to be reduced to $140 which should result in 20% of
the time spent on Combo deals while facial will reduce to 30%. Prepare the revenue budget for
the following year.
 Marking Criteria for Tutorial Exercise One (20%)

Question Weighting Marks gained

Part A

a) 6

b) 6

c) 12

d) 12

Part B

a) 5

b) 5

c) 5

d) 10

e) 14

Formatting

Document should be well organized and 5

accurately formatted (correct headings,
dollar signs, etc.)
TOTAL 80 Marks

Show workings for all questions. Workings will carry marks too.