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Functional Budget

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Functional Budget

  • This topic has 1 reply, 1 voice, and was last updated 9 years ago by felixx3.
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  • March 1, 2016 at 3:05 am #302716
    felixx3
    Member
    • Topics: 8
    • Replies: 4
    • ☆

    Abc limited is preparing its annual budget for the year ending 31december 2014. It produces and sells only 1 type of good, which is selling for $50 each. The marketing director believes that the price can be increased to $60 with effect from 1st july 2014 and that at this price the sales volumes for each quarter of 2014 will be as follows:

    Quarter1 40000units
    Quarter2 50000units
    Quarter3 30000units
    Quarter4 45000units

    Sales for each quarter of 2014 are expected to be 40000 units.

    March 1, 2016 at 3:07 am #302717
    felixx3
    Member
    • Topics: 8
    • Replies: 4
    • ☆

    The question is:
    What are the sales units for all 4 quarters in the year ending 31 december 2014? And why?

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