Please do not give solution in image format thanku Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,150 for the Sleepeze, 11,940 for the Plushette, and 4,850 for the Ultima. Gene Dixon, vice president of sales, has provided the following information:a. Salaries for his office (including himself at $65,200, a marketing research assistant at $40,800, and an administrative assistant at $22,550) are budgeted for $128,550 next year.b. Depreciation on the offices and equipment is $19,600 per year.c. Office supplies and other expenses total $21,850 per year.d. Advertising has been steady at $20,200 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 10 percent of first-year Ultima sales for a print and televisioncampaign.e. Commissions on the Sleepeze and Plushette lines are 5 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores.f. Last year, shipping for the Sleepeze and Plushette lines averaged $50 per unit sold. Gene expects the Ultima line to ship for $80 per unit sold since this model features a larger mattress.Required:1. Suppose that Gene is considering three sales scenarios as follows:ExpectedOptimisticPrice QuantitySleepeze $183 12,450Plushette295 10,0902,080UltimaSleepezePlushettePessimisticUltima860Prepare a revenue budget for the Sales Division for the coming year for each scenario.Olympus, Inc.Revenue BudgetFor the Coming YearTotal salesCommissionsShipping:SalariesDepreciationOffice supplies and otherAdvertising:Pessimistic Expected Optimistic2. Prepare a flexible expense budget for the Sales Division for the three scenarios above. If required, round answers to the nearest dollar.Olympus, Inc.Flexible Expense BudgetFor the Coming YearSleepeze and PlushetteUltimaPrice Quantity$201 15,150352 11,940970 4,850 1,150SleepezePlushetteUltimaPrice Quantity$201 17,880362 13,7504,850Pessimistic Expected Optimistic000 0000000 000088

Flexible budgets are budgets that can be altered based on income and expenditure changes during the…

Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,150 for the Sleepeze, 11,940 for the Plushette, and 4,850 for the Ultima. Gene Dixon, vice president of sales, has provided the following information: a. Salaries for his office (including himself at $65.200, a marketing research assistant at $40.800, and an administrative assistant at $22.550) are budgeted for $128.550 next year. b. Depreciation on the offices and equipment is $19,600 per year. c. Office supplies and other expenses total $21.850 per year. d. Advertising has been steady at $20,200 per year. However the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 10 percent of first-year Ultima sales for a print and televisi campaign. e. Commissions on the Sleepeze and Plushette lines are 5 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores. 5. Last year shipping for the Sleepeze and Plushette lines averaged $50 per unit sold. Gene expects the Ultima line to ship for $80 per unit sold since this model features a larger mattress. Required: 1. Suppose that Gene is considering three sales scenarios as follows: Pessimistic Expected Optimistic Price Quantity Sleepeze $183 12,450 Plushette 295 10,090 Ultima 860 2.000 Prepare a revenue budget for the Sales Division for the coming year for each scenario. Olympus, Inc. Revenue Budget For the Coming Year Sleepeze Plushette Ultima Total sales 2. Prepare a flexible expense budget for the Sales Division for the three scenarios above. If required, round answers to the nearest dollar. Olympus, Inc. Price Quantity Price Quantity $201 15,150 $201 17,880 352 11,940 362 13,750 970 4,850 1.150 4,850 Pessimistic Expected Optimistic Salaries Depreciation Office supplies and other Advertising: Commissions Shipping: Sleepeze and Plushette Ultima Sleepeze Plushette Ultima Flexible Expense Budget For the Coming Year 1000 000 0000 000 000 000 Pessimistic Expected Optimistic 000 000 000 888