Two products A and B are manufactured in a department. Sales for the year 2020 were planned as follows: Product Quarter 1 Quarter 2 Quarter 3 Quarter 4 A 8000 10000 11000 14000 B 6000 8000 7500 5500 Selling prices in Quarter 1 were estimated as OMR 20 per unit for A and OMR 30 for B respectively. Average sales return are 5% of Sales and 10% increase in selling price in each quarter compared to previous one. According to these estimates, which of the following is estimated Sales (OMR) in Quarter 3 for Product A?
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 A and B are manufactured in a department. Sales for the year 2020 were planned as follows:
|
Product |
Quarter 1 |
Quarter 2
|
Quarter 3
|
Quarter 4
|
|
A |
8000 |
10000 |
11000 |
14000 |
|
B |
6000 |
8000 |
7500 |
5500 |
Selling prices in Quarter 1 were estimated as OMR 20 per unit for A and OMR 30 for B respectively. Average sales return are 5% of Sales and 10% increase in selling price in each quarter compared to previous one.
According to these estimates, which of the following is estimated Sales (OMR) in Quarter 3 for Product A?
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