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Question 5 Functional Budget Adam manufactures two types of toys "Dim" and "Sim" and sells...

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Question 5 Functional Budget Adam manufactures two types of toys "Dim" and "Sim" and sells them in the Hongkong and Shanghai market. The following information is made available for the current year Beijing Market Budgeted Sales Actual Sales Dim each 59 400 each 59 500 Sim each 521 @ 300 each $21 200 Dim each $9 600 each 59 60 700 Sim $2teach 500 $21each 400 Shanghai Market studies reveal that Dim is popular as it is underpriced and if the price is increased by $1 it will find a ready market. On the other hand Sim is over priced and market could absorb more sales if uts selling prce is reduced to $20. The management has agreed to give effect to the above price changes and followint estimates have been prepared by the Sales Manager: increase in sales over current %budget Product Beijing Shanghai Dim 10%+ 5%+ Sim 20%+ 10% With the help of an intensive advertisement campaign, the following additional sales above the estimated sales of Sales Manager are possible Product Beijing Shanghai Dim Units 60 Units 70 Sim Units 40 Units 5 You are required to prepare a budget for sales incorporating the above estimates

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