Question
Al Hafiz LLC manufactures wooden office table and chairs. The company has three branches in Oman: Muscat, Sohar and Salalah. Preliminary sales budgets for the
Al Hafiz LLC manufactures wooden office table and chairs. The company has three branches in Oman: Muscat, Sohar and Salalah. Preliminary sales budgets for the year ending 31st December 2019, based on the assessments of the divisional sales executives:
Number of Tables: Muscat 1400; Sohar 1000 and Salalah 500
Number of Chairs: Muscat 1800; Sohar 1000 and Salalah 500
Sales Price: Tables OMR 70 and Chairs OMR 50 in all the branches.
Arrangements are made for extensive advertising of both the products. And sales is estimated to be as follows:
Muscat branch sales will increase by 100 units of tables and 200 units of chairs
Salalah branch total sales is expected to be 750 units of tables and 750 units of chairs
Since the estimated sales of Sohar branch represented an unsatisfactory target, it is agreed to increase both the estimates by 10%.
Prepare a sales budget for the year ending 31st December 2019. (5 Marks)
B. Explain ANY FIVE important factors that Al Hafiz LLC should consider when preparing the sales budget for the period. Justify the factors considered with suitable examples. (5 Marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started