Consider a company that sells prescription drugs. I It has sales people who visit doctors and hospitals to encourage physicians to prescribe its drugs. The company sells to drugstores. Sales people are evaluated on their sales on their territories.

Instructions: answer to the following questions

1- To plan operations, this company needs to develop estimates of total sales. Where should it get this information?

2- Budgeting allows an organization to identify potential problems so that plans can be developed to avoid these problems or to deal with them systematically. Give an example of how budgeting might serve this role in this company.

3- Give an example of how could budgeting be used to plan and evaluate performance in this company.

How could be used to motivate their employees?

4. Which type of budgeting will you recommend to be used in this company?