Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4: Oman Company manufactures two products OM1 and OM2. Its sales department has three divisions: Salalah, Muscat and Sohar. Initial estimates for the sales

image text in transcribed
Question 4: Oman Company manufactures two products OM1 and OM2. Its sales department has three divisions: Salalah, Muscat and Sohar. Initial estimates for the sales budgets for the year ending 31 December 2021 which are based on the assessments of the divisional executives are as follows; Product OM1 : Salalah 55,000 units: Muscat 115,000 units and Sohar: 28,000 units Product OM2: Salalah 73,000 units: Muscat 88,000 units and Sohar:0 Sales Prices: OM1: 4 OMR and OM2= 5 OMR in all areas. Arrangements are made for the extensive advertising of product OM1 and OM2 and it is estimated that Salalah division sales will increase by 32,000 units. Arrangements are also made to advertise and distribute product OM2 in the Sohar area in the second half of 2021 when sales are expected to be 110,000 units. Since the estimated sales of the Muscat division represented an unsatisfactory target, it is agreed to increase both the estimates by 18 %. Prepare a sales budget for the year to 31 December 2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

11th Edition

9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895

More Books

Students also viewed these Accounting questions

Question

Are the hours flexible or set?

Answered: 1 week ago