CHAPTER 2

1 Tania pty ltd produces one produce , cemic. Cemic currently sells for $10 perlitre but there
will be and increase to $15 perlitre from 1 sept Tania sales budget depends on information
from the holding company about its excepted demand.chemmajor has now advised of 5% in
july and in aug and sept 15%
actual litres transferred to chemmajor last year were
july aug sep
litres 30000 40000 50000

Tania requires its sales budget to be prepared for july aug and sept

solution

litres of cemic to be transferred to Tania major:

july 105% 30000 31500
aug 115% 40000 46000
sep 115% 50000 57500

the sales budget may, therefore, be presented as:

TANIA PTY LTD

SALES BUDGET
FOR JULY AUG SEP
jul aug sep
total sales In litres 31500 46000 57500
seling price perlitre $10 $15 $15
total sales in dollars $315,000 $690,000 $862,500
2 FIFA produces a single product and has set up a budget task force to oversee the preparation
of each department's budget. For the first month of the budget, Aug the budget task force has
receive two forecast sales , one of sales representative and the other from the marketing the
sales representative have forecast 300,000 units and the other from the marketing have
forecast 200,000 units after consultation , the budget task force decided that the sales
representatives have underrestimated sales and the marketing manager has overestimated
sales, it now decided
1. increase the sales representative forecast by 2%
2. decrease the sales representative forecast by 4%
the produc sell for $20 perunit, caculated the budget sales for aug

ANSWER
caculation
sales representative adjusted forecast 300000 102% 306000
marketing representative adjusted forecast 200000 96% 192000
sales perunit 498,000
sales dollars 498000 $20 $9,960,000

3 Dr Zee, an ear specialist, has determined that in any single working day (usually 8 hr) he sees
an average of 2 patients perhour. He estimated that the number of working days of the first
quarter of the year is :
month working days
jan 30
feb 24
mar 15
he currently charges $100 perpatients but anticipates decrease the charges from 1 feb to $80
per patients. He wants caculate his budgeted revenue for jan feb mar.

Dr. Zee
Budgeted revenue
for Jan, Feb and Mar

Jan Feb Mar

Number of working days 30 24 15
Number of Patients per days 16 16 16
total number per patients 480 384 240
fee charges patients $100 $80 $80
budgeted total fees $48,000 $30,720 $19,200