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Q3. Central Trading LLC, Oman operates in three countries UAE, India and Oman, which sells three branded products named as pen, pencil and eraser. The

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Q3. Central Trading LLC, Oman operates in three countries UAE, India and Oman, which sells three branded products named as pen, pencil and eraser. The budget committee needs a sales budget for the next three months July, August and September are as follows: Product UAE India Oman Pencil 1,00,000 30,000 70,000 Pen 80,000 65,000 80,000 Eraser 40,000 45,000 40,000 Actual sales units for the current year based on actual sales to the date and estimated sales for the balance of the year are: Product UAE India Oman Pencil 70,000 50,000 70,000 Pen 60,000 75,000 90,000 Eraser 25,000 40,000 30,000 The selling prices per unit of pencil, pen and eraser are OMR 5, OMR 10 and OMR 1 respectively. In the discussion with divisional sales managers, it was informed that product pencil is oversold. They proposed the following: If the price is increased by 10%, even then it finds a ready market. Price of pen can be reduced by 5% and eraser by 10%. By incorporating these changes, the sales will be as follows: Product UAE India Oman Pencil (+30%) (+40%) (+20%) Pen (-10%) (+30%)(-10%) Raiser (+10%) (+20%)| (+10%) You are required to prepare the budget for the current year as well as budget for next year. Page 2 of 2 4. Mention the references (bibliography) of Question 1. Q3. Central Trading LLC, Oman operates in three countries UAE, India and Oman, which sells three branded products named as pen, pencil and eraser. The budget committee needs a sales budget for the next three months July, August and September are as follows: Product UAE India Oman Pencil 1,00,000 30,000 70,000 Pen 80,000 65,000 80,000 Eraser 40,000 45,000 40,000 Actual sales units for the current year based on actual sales to the date and estimated sales for the balance of the year are: Product UAE India Oman Pencil 70,000 50,000 70,000 Pen 60,000 75,000 90,000 Eraser 25,000 40,000 30,000 The selling prices per unit of pencil, pen and eraser are OMR 5, OMR 10 and OMR 1 respectively. In the discussion with divisional sales managers, it was informed that product pencil is oversold. They proposed the following: If the price is increased by 10%, even then it finds a ready market. Price of pen can be reduced by 5% and eraser by 10%. By incorporating these changes, the sales will be as follows: Product UAE India Oman Pencil (+30%) (+40%) (+20%) Pen (-10%) (+30%)(-10%) Raiser (+10%) (+20%)| (+10%) You are required to prepare the budget for the current year as well as budget for next year. Page 2 of 2 4. Mention the references (bibliography) of Question 1

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