Briefly discuss the ways a realistic budget will benefit the owner of Babycakes versus having no budget at all. . Budgeting is an important element in any form of business. It allows businesses the capacity to meet the important goals while keeping costs and expenses in check (Venkatraman & Ramanujam, 1986). Babycakes bakery would benefit more with a realistic budget rather than not having a budget at all. A realistic budget will outline the bakery needs as to cost and input. This would allow management to plan in advance to map out with is needed to make the cakes. Operating without a budget would make the running and managing of the bakery a very hard job to keep up with. Prepare a sales budget for the LA Babycakes store for the 4th quarter of 2016. Present the number of units, sales price, and total sales for each month; include October, …show more content…
Table October November December Quarterly Total Expected Unit Sales 800 900 1,000 2,700 X Price Per Unit $3.50 $3.50 $3.50 $3.50 Equals Total Net Sales $2,800 $3,150 $3,500 $9,450 Create three (3) new products, one (1) for each of the three (3) holiday seasons in the 4th quarter. Estimate the sales units, sales price, and total sales for each month. Describe the assumptions used to make these estimates. Include an overview of the budget in the report, presenting the actual budget as an appendix with all data and calculations. Add these amounts to your sales budget. The (3) new products that have been create for the (3) holidays are: Halloween-S’mores Pumpkin Cupcakes; Thanksgiving-Sweet Potato Pie Cupcake; Christmas- Scrooge Cupcake. Displayed on Appendix A are the sales price, estimated sales units and total sales for the months of October, November, and December. Appendix A Table October Halloween November Thanksgiving December Christmas Quarterly