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The Sales Budget - an Example

The Sales Budget as a Part of the Operating Budget


If we use ArtCraft Pottery as our example, which comes from the article on Budgeting - How to Develop the Operating Budget, the following information can be used to develop the sales budget:


The following is the information for quarters 1 through 4 for ArtCraft Pottery. The selling price per piece of pottery is $10.00. We need the sales budget for each quarter plus the total for the year. These figures were provided by the sales people out in the field.

Sales Budget for ArtCraft Pottery

1 2 3 4 Year
Units 1,200 2,000 5,700
Unit Selling Price X $10 X $10 X $10 X $10 X $10
Budgeted Sales $10,000 $12,000 $15,000 $20,000 $57,000

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