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2. You are the marketing manager for Eros Company. This fall you met with the chief operating officer and discussed the outlook for furniture sales

2. You are the marketing manager for Eros Company. This fall you met with the chief operating officer and discussed the outlook for furniture sales in the next year. Although you both agreed that selling prices should not be raised, an increase in advertising and offering "buy now, pay later" to customers would result in modest increases in sales volume. Next year's sales budget was agreed as follows: Units Unit price Budgeted sales Marketing costs Required (a) (b) Eros Company Next Year's Sales Budget Furniture Appliances 10,000 $500 $5,000,000 $1,000,000 25,000 $200 $5,000,000 $1,000,000 Total 35,000 $10,000,000 $2,000,000 Is this an imposed budget or a participative budget? If actual sales turned out to be $10,500,000 and actual costs turned out to be $2,050,000, would the marketing department be in control or out of control?

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