Question 4: Dhofar Company manufactures two products M1 and Z1. Its salesdepartment has three divisions: Salalah, Raysut and MirbatInitial estimates for the sales budgets for the year ending 31 December 2021 whichare 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 unitsProduct Z1: Şalalah 70,000 units: Raysut 82,000 units and Mirbat:0Sales Prices: M1: 3 OMR and Z1= 4 OMR in all areas.Arrangements are made for the extensive advertising of product M1 and Z1 and it isestimated that Salalah division sales will increase by 30,000 units. Arrangements arealso made to advertise and distribute product z1 in the Mirbat area in the second halfof 2021 when sales are expected to be 100,000 units.Since the estimated sales of the Raysut division represented an unsatisfactorytarget, it is agreed to increase both the estimates by 15 %.Prepare a sales budget for the year to 31 December 2021.

Solution: Dhofar company Sales Budget For the year ended Dec 31, 2021 Product Division…

Answered: its sales department has three…

Business

Accounting

its sales department has three divisions: Salalah, Raysut and Mirbat

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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