Mathematical problem 01 (Budget)

Problem:

A company manufactures 2 products – A and B. Its sales department has 3 divisions-

i.                    North;

ii.                  south ; and

iii.                East.

Preliminary sales budget for the year ending 31^st December, 2011 based on the assessment of the divisional management were:

Product A:      North: 200000 units,

South: 500000 units,

East: 100000 units.

Product B:      North: 300000 units,

                        South: 400000 units,

                        East:    (nil)

Sales price:     A – Tk 4 per unit;

                        B- Tk 3 per unit.

Arrangements are made for the extensive advertisement of product A and B. And it is estimated that north division sales will increase by 100000 units.

Arrangements are also made to advertise and distribute product B in the Eastern area in the 2^nd half of 2011. Funds raised are expected to be 500000 units.

Since the estimated sales of the south division represented on unsatisfactory target, it is agreed to increase both the estimates by 10%.

Prepare sales budget for the year to 31^st December, 2011.

Solution:

Sales Budget

(For the Year- 2011)

Division	A			B			Total (Tk)
	Units	Price	Value	Units	Price	Value
North	300000	4	1200000	400000	3	1200000	2400000
South	550000	4	2200000	440000	3	1320000	3520000
East	100000	4	400000	50000	3	1500000	1908000
Total			3800000			4020000	7820000