| Input Parameters |
| Selling Price |
$40 |
| Cost |
$25 |
| Overhead rate |
15% |
| Sales parameter a |
35 |
|
|
|
| Deseasonalized Sales = a x sqrt(b + advertising) |
| Sales parameter b |
3000 |
| Annual advertising budget |
$40,000 |
|
| Q1 |
Q2 |
Q3 |
Q4 |
| Sales expenses |
$8,000 |
$8,000 |
$9,000 |
$9,000 |
| Demand seasonality factor |
0.9 |
1.1 |
0.8 |
1.2 |
| Decisions |
|
| Q1 |
Q2 |
Q3 |
Q4 |
Total Spent |
| Advertising expenditure |
$10,000 |
$10,000 |
$10,000 |
$10,000 |
$40,000 |
| Calculations |
| Objective |
| Profit |
$ 69,662 |
|
| Q1 |
Q2 |
Q3 |
Q4 |
Annual |
| Deseasonalized sales |
3990.6 |
3990.6 |
3990.6 |
3990.6 |
15962.5 |
| Sales (units) |
3591.6 |
4389.7 |
3192.5 |
4788.7 |
15962.5 |
After seasonality adjustments |
| Revenue |
$143,662 |
$175,587 |
$127,700 |
$191,549 |
$638,498 |
| Cost |
$89,789 |
$109,742 |
$79,812 |
$119,718 |
$399,061 |
Cost of goods sold |
| Overhead |
$21,549 |
$26,338 |
$19,155 |
$28,732 |
$95,775 |
Overhead rate times revenue |
| Sales expenses |
$8,000 |
$8,000 |
$9,000 |
$9,000 |
$34,000 |
| Advertising expenditure |
$10,000 |
$10,000 |
$10,000 |
$10,000 |
$40,000 |
| Quarterly profit |
$14,324 |
$21,507 |
$9,732 |
$24,099 |
$69,662 |