A company manufactures two products, A and B. Its sales department has three area divisions, North, East and South. Preliminary sales budgets for the year ending 31st March 2007, based on the assessment of the divisional managers were as follows.
Product A: North 2,00,000 units, South 5,50,000 units and East 1,00,000 units
Product B: North 3,00,000 units, South 4,00,000 units and East Nil
Sale price: A Rs.4 and B Rs.3 in all areas.
Arrangements are made for the extensive advertising of Products A and B and it is estimated that the North division sales will increase by 1,00,000 units. Arrangements are also made to advertise and distribute product in Eastern area in the second half of the year 2006 07 when sales are expected to be 5,00,000 units.
Prepare a revised sales budget for the year ended 31st March after taking into consideration the above mentioned adjustments.