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Question - Cellular Solutions Inc. had a very successful year in 2013. Based on a $125 average unit selling price, monthly sales during 2013 were as follows:

January

$75,000

February

60,000

March

100,000

April

150,000

May

60,000

June

50,000

July

40,000

August

85,000

September

65,000

October

95,000

November

35,000

December

50,000

Total

$865,000

Mr. James, vice president of sales, is preparing the sales budget for 2014. Increased manufacturing costs will make it necessary to increase the selling price by 12 percent. Even with this price increase, the unit volume of sales is expected to increase by 25 percent. The seasonal sales pattern shown for 2013 is expected to continue in 2014.

Prepare the monthly sales unit and dollar budgets for the first quarter of 2014?

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