Marketing Expense Budget Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used regularly for 45 days, will grow hair in bald spots (with varying degrees of success). Timothy calls his lotion Hair-Again and is selling it via the telephone and Internet. His major form of marketing is through 15-minute infomercials and Internet advertising. Timothy sells each 16-ounce bottle of Hair-Again for $15 and pays a commission of 3 percent of sales to telephone operators who field the 1-800 phone calls from potential customers. Fixed marketing expenses for each quarter of the coming year include: Internet banner ads $7,600 Telephone operator time 4,000 Travel 3,000 In addition, early next year Timothy intends to film and show infomercials on television. He expects the cost to be $10,000 in quarters 1 and 2, and that the cost will rise to $25,000 in each of quarters 3 and 4. Timothy expects the following unit sales of Hair-Again: Quarter 1 5,000 Quarter 2 15,000 Quarter 3 40,000 Quarter 4 35,000 Required: Question Content Area 1. Construct a marketing expense budget for Hair-Again for the coming year. Show total amounts by quarter and in total for the year. If required, round your answers to two decimal places. Hair-AgainMarketing Expense BudgetFor the Year Ended December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total - Select - - Select - - Select - - Select - - Select - $- Select - $- Select - $- Select - $- Select - $- Select - Total variable expense $fill in the blank 2fdcd9fb4064fab_13 $fill in the blank 2fdcd9fb4064fab_14 $fill in the blank 2fdcd9fb4064fab_15 $fill in the blank 2fdcd9fb4064fab_16 $fill in the blank 2fdcd9fb4064fab_17 Fixed marketing expense: $- Select - $- Select - $- Select - $- Select - $- Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Total fixed expense $fill in the blank 2fdcd9fb4064fab_42 $fill in the blank 2fdcd9fb4064fab_43 $fill in the blank 2fdcd9fb4064fab_44 $fill in the blank 2fdcd9fb4064fab_45 $fill in the blank 2fdcd9fb4064fab_46 Total marketing expense $fill in the blank 2fdcd9fb4064fab_47 $fill in the blank 2fdcd9fb4064fab_48 $fill in the blank 2fdcd9fb4064fab_49 $fill in the blank 2fdcd9fb4064fab_50 $fill in the blank 2fdcd9fb4064fab_51 Question Content Area 2. What if the cost of internet ads rises to $16,000 in Quarters 2 through 4? How would that affect variable marketing expense? Fixed marketing expense? Total marketing expense? If no effect, enter "0" and select "no impact". Variable marketing expense $fill in the blank 1c0eca01ffdffac_1 Fixed marketing expense $fill in the blank 1c0eca01ffdffac_3 Total marketing expense $fill in the blank 1c0eca01ffdffac_5
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Question Content Area
Marketing Expense Budget
Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used regularly for 45 days, will grow hair in bald spots (with varying degrees of success). Timothy calls his lotion Hair-Again and is selling it via the telephone and Internet. His major form of marketing is through 15-minute infomercials and Internet advertising. Timothy sells each 16-ounce bottle of Hair-Again for $15 and pays a commission of 3 percent of sales to telephone operators who field the 1-800 phone calls from potential customers. Fixed marketing expenses for each quarter of the coming year include:
Internet banner ads $7,600 Telephone operator time 4,000 Travel 3,000 In addition, early next year Timothy intends to film and show infomercials on television. He expects the cost to be $10,000 in quarters 1 and 2, and that the cost will rise to $25,000 in each of quarters 3 and 4. Timothy expects the following unit sales of Hair-Again:
Quarter 1 5,000 Quarter 2 15,000 Quarter 3 40,000 Quarter 4 35,000 Required:
Question Content Area
Hair-AgainMarketing Expense BudgetFor the Year Ended December 311. Construct a marketing expense budget for Hair-Again for the coming year. Show total amounts by quarter and in total for the year. If required, round your answers to two decimal places.
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total - Select - - Select - - Select - - Select - - Select - $- Select - $- Select - $- Select - $- Select - $- Select - Total variable expense $fill in the blank 2fdcd9fb4064fab_13 $fill in the blank 2fdcd9fb4064fab_14 $fill in the blank 2fdcd9fb4064fab_15 $fill in the blank 2fdcd9fb4064fab_16 $fill in the blank 2fdcd9fb4064fab_17 Fixed marketing expense: $- Select - $- Select - $- Select - $- Select - $- Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Total fixed expense $fill in the blank 2fdcd9fb4064fab_42 $fill in the blank 2fdcd9fb4064fab_43 $fill in the blank 2fdcd9fb4064fab_44 $fill in the blank 2fdcd9fb4064fab_45 $fill in the blank 2fdcd9fb4064fab_46 Total marketing expense $fill in the blank 2fdcd9fb4064fab_47 $fill in the blank 2fdcd9fb4064fab_48 $fill in the blank 2fdcd9fb4064fab_49 $fill in the blank 2fdcd9fb4064fab_50 $fill in the blank 2fdcd9fb4064fab_51 Question Content Area
2. What if the cost of internet ads rises to $16,000 in Quarters 2 through 4? How would that affect variable marketing expense? Fixed marketing expense? Total marketing expense? If no effect, enter "0" and select "no impact".
Variable marketing expense $fill in the blank 1c0eca01ffdffac_1 Fixed marketing expense $fill in the blank 1c0eca01ffdffac_3 Total marketing expense $fill in the blank 1c0eca01ffdffac_5
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