A company two articles L and M and its sales department has three divisions: A, B & C. Preliminary sales budgets for the year December 2018.  Based on the assessments of the divisions, the following information is given               Product L: A 15000 units, B 17500 units and C 22500 units              Product M: A 22000 units, B 24500 units and C – Nil Sales price L is RO 3.75 and M is RO 4.5 in all the divisions Arrangements are made for the extensive advertising of product L and M and it is estimated that A division will increase by 12000 units.  Arrangements are also made to advertise and distribute product M in Division C and sales are expected to be 35000 units. Prepare a sales budget for the year 2018.

Cornerstones of Cost Management (Cornerstones Series)
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Chapter7: Allocating Costs Of Support Departments And Joint Products
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  1. A company two articles L and M and its sales department has three divisions: A, B & C. Preliminary sales budgets for the year December 2018.  Based on the assessments of the divisions, the following information is given

              Product L: A 15000 units, B 17500 units and C 22500 units

             Product M: A 22000 units, B 24500 units and C – Nil

Sales price L is RO 3.75 and M is RO 4.5 in all the divisions

Arrangements are made for the extensive advertising of product L and M and it is estimated that A division will increase by 12000 units.  Arrangements are also made to advertise and distribute product M in Division C and sales are expected to be 35000 units.

Prepare a sales budget for the year 2018.

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