Budgeting & Divisional Performance analysis for Beta Enterprises (a) Budgeting for Beta Enterprises Beta Enterprises is a merchandising company buying and selling various products in Gulf Countries. The company uses budgets as one of its main accounting tools for estimating revenues, cost and profits. The accounting department has a separate division working on estimations. They also prepare reports on variances they find on various activities and accordingly action plans are further developed to deal with unfavorable variances The company provides some details for the period 2017 for preparing necessary budgets: The Company has predicted that it can maximize its profits if it charges $ 200 for one of its products. The marketing manager of the company has indicated that at a price of S 200 the company can sell 1,000 units in the first quarter of 2017. Due to an emerging trend observed, the marketing manager predict to increase its sales by 100 units each quarter. Selling price is expected to be same throughout the year 2017. Other details are as below I. Of all sales 80% are on credit 2. 70% of credit sales are collected in the quarter in which the sale is made and 30% are collected in the following quarter