A manufacturing company sels three products P, Q and R which are as follows Product North West South P 15,220 12,500 17,560 Q 18,000 7,500 8,000 R 16,500 20,500 6,000 Sales prices are Rs. 12, Rs. 8, and Rs. 10 for product P, Q and R respectively in all the areas. Actual sales for the current year were:

Product North West South P 16,220 13,800 16,000 Q 12,500 7,000 6,000 R 14,000 16,500 7,500 A market research was conducted by the management and it was found that product P has a favour among the customers and if its price is increased by Rs. l, its sale will not be affected. The product Q is overpriced and it is proposed to reduce it by Re. l.

Product R is properly priced, but extensive advertisement is required to push its sales.

On the above estimates, it is expected that the percentage increase in sales will be:

Product North West South P 10% 5% 5%
Q 10% 5% 10%
R 5% 10% 15%
It is also expected that there will be further push up in sales if extensive advertisement is resorted to. The increase will be:
Product North West South P 1,500 240 55 Q 600 1,000 1,050 R 600 Nil 700 Prepare the sales budget for the year 2009.
[Ans. as below]:
Product North West South P 2,37,146 1,73,745 2,40,409 Q 1,42,800 62,125 68,950 R 1,79,250 2,25,500 76,000