11:39 AM a . ..i| fink; al- OROUP FlVE...signments J |_ GROUP FIVE a. The Euro Ltd is a wholesaler who sells its products to retailers throughout Europe. Euro's headquarters is in Brussels. The company has adopted a regional structure with each region consisting of 3 5 sales territories. Each region has its own regional office and a warehouse which distributes the goods directly to the customers. Each sales territory also has an office where the marketing staffs are located. The Scandinavian region consists of three sales territories with offices located in Stockholm, Oslo and Helsinki. The budgeted results for the next quarter are as follows: Stockholm Oslo Helsinki Total 3000's 3000's $000's $000's Cost of goods sold 800 850 1000 2650 Sales persons salaries 160 200 240 600 Sales office rent 60 90 120 2?0 Depreciation of sales office equipment 20 30 40 90 Apportionment of warehouse rent 24 24 24 72 Depreciation of warehouse equipment 20 16 22 58 Regional and headquarters costs Causeand-effect allocations 120 1 52 186 458 Arbitrary apportionments @ E m E Total costs assigned to each location 1564 1762 1972 5298 Reported profit E E [2?21 & Sales 1800 2000 1700 5500 Assuming that the above results are likely to be typical of future quarterly performance advice if the Helsinki territory be discontinued (8 Marks) b. Using the information given below. prepare the following budgets i. Sales budget (3 Marks) ii. Production budget (3 Marks) iii. Materials usage budget { 6 Marks) Product Quantit units Price each Sh Sales: A 10 000 B 12 000 C 14 000 Materials used in the ooman s roducts: Material M1 M3 Unit cost Sh 400 900 Quantities used in: MI units M3 units Product A 4 - Product B 3 2 Product 0 2 1 Finished stocks: Product Product 0 A units units Quantities 1'1 January 1 000 1 500 500