Two products DH1 and DH2are manufactured in a department. Sales for the year 2022 were planned as follows: Product Quarter 1 Quarter 2 Quarter 3 Quarter 4 DH1 9000 12000 14000 16000 DH2 7000 9000 1000 12000 Selling prices in Quarter 1 were estimated as OMR 20 per unit for DH1 and OMR 30 for DH2 respectively. Average sales return are 10% 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 4 for Product DH1? Select one: a. 394129 b. 389253 c. 366000 d. 383328
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 DH1 and DH2are manufactured in a department. Sales for the year 2022 were planned as follows:
|
Product |
Quarter 1 |
Quarter 2
|
Quarter 3
|
Quarter 4
|
|
DH1 |
9000 |
12000 |
14000 |
16000 |
|
DH2 |
7000 |
9000 |
1000 |
12000 |
Selling prices in Quarter 1 were estimated as OMR 20 per unit for DH1 and OMR 30 for DH2 respectively. Average sales return are 10% 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 4 for Product DH1?
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