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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 are forecasted sales figures provided by the sales people out in the field.

Sales Budget for ArtCraft Pottery

1 2 3 4 Year
Units 1,000 1,200 1,500 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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