Transcribed Image Text: Question 4:Dhofar Company manufactures two products M1 and Z1. Its sales department has three divisions: Salalah, Raysut and Mirbat. Initial estimates for the sales budgets for the

Transcribed Image Text: Question 4:Dhofar Company manufactures two products M1
and Z1. Its sales department has three divisions: Salalah,
Raysut and Mirbat.
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 M1 :Salalah 45,000 units: Raysut 110,000 units and
Mirbat: 25,000 units
Product Z1: Salalah 70,000 units: Raysut 82,000 units and
Mirbat:0
Sales Prices: M1: 30MR and Z1= 4 OMR in all areas.
Arrangements are made for the extensive advertising of product
M1 and Z1 and it is estimated that Salalahdivision sales will
increase by 30,000 units. Arrangements are also made to
advertise and distribute product z1 in the Mirbatarea in the
second half of 2021 when sales are expected to be 100,000
units.
Since the estimated sales of the Raysut division represented an
unsatisfactory target, it is agreed to increase both the estimates
by 15 %.
Prepare a sales budget for the year to 31 December 2021.

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