1 3 2. 1 5 Medical Tools Company manufactures and sells specific clinical machine used in hospitals. The medical equipment market is very competitive, Due to economic recession since last two years it's difficult for the company to maintain its revenue and profits. Each year budget is prepared for material, labor and sales. Departmental managers have a freedom to revise their respective budgets for any planning errors. The following data is available relating to the sales of clinical machine for the year. Budget Actual Sales volume (units) 6000 5600 Selling Price (OMR) 10000 to 10500 9800 to 10300 Standard Variable cost for the machine is OMR 9000. (dual 1 A . Aa A ... . A. ===- - 2 ! 1 2 | | 3 5 Despite of the recession the market of clinical machines is increasing as the govt is stressing upon increasing the medical facilities. The total market demand has been estimated at 250,000 machines for the last few years. The total actual market demand for the machines, though, had risen by 20% to 300,000 machines Based on the above information: a) Calculate the sales price and total sales volume Contribution variance. 9 Marks b) Sales volume variance could be divided into sales volume planning and sales volume operational. Analyse by showing the relevant calculations. 9 Marks c) As per your calculation evaluate on the sales performance of the business 7 Marks