Quatar, UAE, and Saudi Arabia Economics Group Project
Qn 1:
Solution
Even though the statement has been prepared based on territory, it does not have the representation to expenses which relate to variable and fixed.
Qn 2:
Solution
Saudi Arabia
Qatar
UAE
Total
Amount QR
In %
Amount QR
In %
Amount QR
In %
Amount QR
In %
Sales
240,000
640,000
560,000
1,440,000
Less: Variable Cost
Cost of goods sold
74,400
0.31
192, 000
0.30
252,000
0.45
518,400
0.36
Shipping Expenses
12,000
0.05
25,600
0.04
33,600
0.06
71,200
0.05
Contribution Margin
153,600
0.64
422,400
0.66
274,400
0.49
850,400
0.59
Less: Fixed Cost
Salaries
43,200
0.18
44,800
0.07
89,600
0.16
177,600
0.12
Insurance
7,200
0.03
12,800
0.02
11,200
0.02
31,200
0.02
Advertising
84,000
0.35
192,000
0.30
196,000
0.35
472,000
0.33
Depression
16,800
0.07
25,600
0.04
22,400
0.04
64,800
0.05
Corporate Advertising Expenses
12,000
0.05
32,000
0.05
28,000
0.05
72,000
0.05
Corporate General Administrative Expenses
16,000
0.07
16,000
0.03
16,000
0.03
48,000
0.03
Net Operating Income
(25,600)
(0.11)
99,200
0.16
(88,800)
(0.16)
(15,200)
(0.01)
Qn 3:
Solution
When comparing the cost of goods that were sold in UAE, we find that their cost was highest within the territory compared to others where there the focus of the management should be.
Salaries in Saudi Arabia and UAE territory are high which requires to be analyzed.
Advertising are as well high in all the territory
Qn 4:
Solution
Saudi Arabia
Qatar
UAE
Total
Amount QR
In %
Amount QR
In %
Amount QR
In %
Amount QR
In %
Sales
240,000
640,000
560,000
1,440,000
Less: Variable Cost
Cost of goods sold
74,400
0.31
192, 000
0.30
252,000
0.45
518,400
0.36
Shipping Expenses
12,000
0.05
25,600
0.04
33,600
0.06
71,200
0.05
Contribution Margin
153,600
0.64
422,400
0.66
274,400
0.49
850,400
0.59
Less: Fixed Cost
Salaries
43,200
0.18
44,800
0.07
89,600
0.16
177,600
0.12
Insurance
7,200
0.03
12,800
0.02
11,200
0.02
31,200
0.02
Advertising
84,000
0.35
192,000
0.30
196,000
0.35
472,000
0.33
Depression
16,800
0.07
25,600
0.04
22,400
0.04
64,800
0.05
Corporate Advertising Expenses
36,000
0.15
24,000
0.04
12,000
0.02
72,000
0.05
Corporate General Administrative Expenses
16,000
0.07
16,000
0.03
16,000
0.03
48,000
0.03
Net Operating Income
(49,600)
(0.21)
107,200
0.17
(72,800)
(0.13)
(15,200)
(0.01)
Case 2:
Qn 1:
Solution
Qn 2:
Solution
Item
Amount
Sales
320,000
Less: Variable costs
Cost of goods sold
150,000
Variable selling Expenses
20,000
Contribution
150,000
Less: Fixed costs
Fixed selling costs
40,000
Net Operating Income
190,000
Qn 3:
Solution
Another factor I would recommend to the owner to consider for the special order before making any decision is the time required to deliver the pairs of …
