Sales Budget

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The sales budget is the basis for all other budget components.
Units to be sold are a function of the forecasted selling price.
The budget requires a forecast of sales, typically involving sales staff and market research.  Various statistical techniques may also be used.  Sales may be forecasted in units and in dollars.
Budgeted revenues can be computed as:

  • Forecasted sales (in units) x Forecasted selling price.


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