SALES BUDGET PROBLEM

Problem 1.62

Tulsian Ltd. provides you the following figures for the year 20X1:

PROBLEM 1.62

Sales area X, Y and Z respectively produce 10%, 20%, 70% of Product ‘A’ sales and 70%, 20% and 10% of Product ‘B’ sales.

Required: Formulate LPP to ascertain the sales of each product in each area during each quarter.

Solution

Sales Budget (In Total) for the Year 20X2

Calculation of Selling Price

Product A 24(1.25) = 30

Product B 50 (.80) = 40

Product Product ‘A Product ‘B
Period Units Units
Ist Quarter 1,000 2,000
2nd Quarter 2,360 1,000
3rd Quarter 2,160 1,250
4th Quarter 2,480 750
  8,000 5,000

Let x111 = Sales of ...

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