Rupert store in Prince Rupert sells 11,000 diet free coca cola for $ 4 each and...

 

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Rupert store in Prince Rupert sells 11,000 diet free coca cola for $ 4 each and 12,000 regular coca-cola for $ 3.5 each in 2019. Because of new regulation and awareness among consumer consumer are decreasing consumption of regular coca-cola and is expected to decrease by 10% next year. However, awareness of sugar is expected to result in a 7% increase in diet coca: cola volume. Rupert store feels that if they lower his price for regular coca cola to $ 3.40 per can, he will have to face only a 4% decline in coca cola, sales in 2020. [ 15 marks] Required; Prepare a 2020 sales budget for Rupert store assuming that Rupert store prices at 2019 levels. Set-A - Prepare a 2020 sales budget for Rupert store assuming that Rupert store lowers the price of a regular coca cola to $ 3.40 per can. -Should Rupert store lower the price of a regular coca cola to $ 3.40 per can if its goal is to maximize sales revenue? 3 Page Student Name: Student No: b) What is budgetary slack and what are the advantages and disadvantages of budgeting? 15 marks] Rupert store in Prince Rupert sells 11,000 diet free coca cola for $ 4 each and 12,000 regular coca-cola for $ 3.5 each in 2019. Because of new regulation and awareness among consumer consumer are decreasing consumption of regular coca-cola and is expected to decrease by 10% next year. However, awareness of sugar is expected to result in a 7% increase in diet coca: cola volume. Rupert store feels that if they lower his price for regular coca cola to $ 3.40 per can, he will have to face only a 4% decline in coca cola, sales in 2020. [ 15 marks] Required; Prepare a 2020 sales budget for Rupert store assuming that Rupert store prices at 2019 levels. Set-A - Prepare a 2020 sales budget for Rupert store assuming that Rupert store lowers the price of a regular coca cola to $ 3.40 per can. -Should Rupert store lower the price of a regular coca cola to $ 3.40 per can if its goal is to maximize sales revenue? 3 Page Student Name: Student No: b) What is budgetary slack and what are the advantages and disadvantages of budgeting? 15 marks]

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