Al Hafiz LLC manufactures wooden office table and chairs. The company has three branches in Oman:...

Al Hafiz LLC manufactures wooden office table and chairs. The company has three branches in Oman: Muscat, Sohar and Salalah. Preliminary sales budgets for the year ending 31st December 2019, based on the assessments of the divisional sales executives:

Number of Tables: Muscat 1400; Sohar 1000 and Salalah 500

Number of Chairs: Muscat 1800; Sohar 1000 and Salalah 500

Sales Price: Tables – OMR 70 and Chairs – OMR 50 in all the branches.

Arrangements are made for extensive advertising of both the products. And sales is estimated to be as follows:

Muscat branch sales will increase by 100 units of tables and 200 units of chairs

Salalah branch total sales is expected to be 750 units of tables and 750 units of chairs

Since the estimated sales of Sohar branch represented an unsatisfactory target, it is agreed to increase both the estimates by 10%.

Prepare a sales budget for the year ending 31st December 2019.

B. Explain ANY FIVE important factors that Al Hafiz LLC should consider when preparing the sales budget for the period. Justify the factors considered with suitable examples.

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Expert Solution

ekkarill92 answered 1 year ago

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