A manufacturing company sells two products which are manufactured in one machinery. During the year 2009, it plans to sell the following quantities of each product.

Sales Budget (in units)

First Second Third Fourth Total Quarter Quarter Quarter Quarter Product 1 90,000 2,30,000 3,00,000 80,000 7,00,000 Product 2 85,000 75,000 55,000 85,000 3,00,000 Each of these two products is sold on a seasonal basis. Product tends to sell better in summer months, while Product 2 sells better during the winter. Company plans to sell product 1 throughout the year at a price of Rs. 10 a unit and product 2 at a price of Rs. 20 a unit.

A study of the past experience reveals that the company has not lost about 3% of its billed revenue each year because of returns constituting 2% of loss of revenue;

allowances and bad debts 1% loss. Prepare a budget incorporating the given information.

[Ans.: I Qr II Or. III Qr. IV Qr.

Net Sales (Rs.) 25,22,000 36,86,000 39,77,000 24,25,000]