Thomas Engineering Co. Ltd. Manufactures two articles X and Y. Its sales department has three divisions: West, South and East. Preliminary sales budgets for the year e nding 3151 December 2003. Based on the assessments of the divisional executives: Product X: West 40,000 units: South 1,00,000 units and East 20,000 units Product Y : West 60,000 units: South 80,000 units and East Nil Sales Price X OMR. 2 and Y OMR. 3 in all areas. Arrangements are made for the extensive advertising of product X and Y and it is estimated that West division sales will increase by 20,000 units. Arrangements are also made to advertise and dist ribute product Y in the Eastern area in the second half of 2003 when sales are expected to be 1,00,000 units. Since the estimated s ales of the South division represented an unsatisfactory target , it is agreed to increase both the estimates by 10 %. Prepare a sales budget for the year to 31" December 2003.

Thomas Engineering Co. Ltd. Manufactures two articles X and Y. Its sales department has three divisions: West, South and East. Preliminary sales budgets for the year e nding 3151 December 2003. Based on the assessments of the divisional executives: Product X: West 40,000 units: South 1,00,000 units and East 20,000 units Product Y : West 60,000 units: South 80,000 units and East Nil Sales Price X OMR. 2 and Y OMR. 3 in all areas. Arrangements are made for the extensive advertising of product X and Y and it is estimated that West division sales will increase by 20,000 units. Arrangements are also made to advertise and dist ribute product Y in the Eastern area in the second half of 2003 when sales are expected to be 1,00,000 units. Since the estimated s ales of the South division represented an unsatisfactory target , it is agreed to increase both the estimates by 10 %. Prepare a sales budget for the year to 31" December 2003.

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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