Selling prices in Quarter 1 were estimated as OMR 20 per unit for X and OMR 30 for Z respectively. Average sales return are 5% of Sales and 10% decrease in selling price in each quarter compared to previous one. According to these estimates, which of the following is estimated Sales (OMR) in Quarter 4 for Product X?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Two products X and Z are manufactured in a department. Sales for the year 2022 were planned as follows:
|
Product |
Quarter 1 |
Quarter 2
|
Quarter 3
|
Quarter 4
|
|
X |
8000 |
10000 |
11000 |
14000 |
|
Z |
6000 |
8000 |
7500 |
5500 |
Selling prices in Quarter 1 were estimated as OMR 20 per unit for X and OMR 30 for Z respectively. Average sales return are 5% of Sales and 10% decrease in selling price in each quarter compared to previous one.
According to these estimates, which of the following is estimated Sales (OMR) in Quarter 4 for Product X?
Step by step
Solved in 2 steps
