Sales Budget - Part 4

Part 4  - Determine your Forecasted Monthly Sales in Units and in Dollars

The fourth part of the Sales Budget is to calculate your Unit Sales per Month and your Dollar Sales per Month. To determine the monthly unit sales, simply multiply your forecasted monthly sales percentages by your forecasted yearly unit sales. To determine the dollar sales per month, simply multiply your monthly unit sales by your selling price per unit (or weighted average selling price if you are selling more than one type of product). Murray would calculate his 200X monthly unit sales and monthly dollar sales in the following manner:

 MONTHLY SALES FORECAST FOR 200X Sales % per month Forecasted Yearly Sales Unit Sales each month Selling Price Dollar Sales each Month MONTH January 0% 4000 0 \$26 \$0 February 0% 4000 0 \$26 \$0 March 0% 4000 0 \$26 \$0 April 0% 4000 0 \$26 \$0 May 0% 4000 0 \$26 \$0 June 0% 4000 0 \$26 \$0 July 18% 4000 720 \$26 \$18,720 August 23% 4000 920 \$26 \$23,920 September 24% 4000 960 \$26 \$24,960 October 13% 4000 520 \$26 \$13,520 November 10% 4000 400 \$26 \$10,400 December 12% 4000 480 \$26 \$12,480 Totals 100% 4000 \$104,000

As shown in the above chart, Murray estimates to sell 720 diskettes in July (18% x 4000 units = 720 unit sales). As a result, Murray expects to have dollar sales of \$18,720 in July ( 720 estimated unit sales in July x \$26.00 selling price = \$18,720). Also shown in the above chart, Murray estimates to sell 920 diskettes in August (23% x 4000 units = 920 unit sales). As a result, Murray expects to have dollar sales of \$23,920 in August ( 920 estimated unit sales in July x \$26.00 selling price = \$23,920). And so on...

Now lets calculate Murray's 200Y Monthly Unit Sales and Monthly Dollar Sales. Recall from above, Murray expects his 200Y Forecasted Units Sales will be 8,000 diskettes and expects his 200Y Selling Price will be \$24.00.

 MONTHLY SALES FORECASTFOR 200Y Sales % / month Forecasted Yearly Sales Unit Sales per month Selling Price Dollar Sales each Month MONTH January 12% 8,000 960 \$24 \$23,040 February 11% 8,000 880 \$24 \$21,120 March 9% 8,000 720 \$24 \$17,280 April 9% 8,000 720 \$24 \$17,280 May 7% 8,000 560 \$24 \$13,440 June 5% 8,000 400 \$24 \$9,600 July 4% 8,000 320 \$24 \$7,680 August 9% 8,000 720 \$24 \$17,280 September 8% 8,000 640 \$24 \$15,360 October 5% 8,000 400 \$24 \$9,600 November 11% 8,000 880 \$24 \$21,120 December 10% 8,000 800 \$24 \$19,200 TOTALS 100% 8000 \$192,000

As shown in the above chart, Murray estimates to sell 960 diskettes in January, 200Y (12% x 8000 units = 960 unit sales). As a result, Murray expects to have dollar sales of \$23,040 in January, 200Y (960 estimated unit sales in January x \$24.00 forecasted selling price = \$23,040). Also shown in the above chart, Murray estimates to sell 880 diskettes in February of 200Y (11% x 8000 units = 880 unit sales). As a result, Murray expects to have dollar sales of \$21,120 in February (880 estimated unit sales in February x \$24.00 selling price = \$21,120).

Categories: Forecasting