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3. . Nizwa Traders is a manufacturing company which has two production plants and produces four different potatoes chips in each plant. Production Plant (1)

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3. . Nizwa Traders is a manufacturing company which has two production plants and produces four different potatoes chips in each plant. Production Plant (1) produces Cheese, Salt, Tomato paste, and Masala:. The estimated stock levels and the sales budget information is available for the year 2020. Nizwa Traders working capital is OMR 250,000, cash balance OMR 65,000 and its total sales budgeted is OMR 283,000. Product Cheese Salt Tomato paste Masala Production Plant (1) Estimated Stock at the Estimated Stock at the Beginning of the end of the Budgeted Budgeted Period (Units) Period(Units) 8,000 9,400 8,000 6,850 9,000 10,800 10,000 9,000 Estimated Sales as per Sales Budget (Units) 33,600 31,200 35,100 32,000 You are required to prepare a production budget for the plant (4 marks) Analyse how the production budget helps to maximise profitability of the organization (1 Mark)

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