# Quatar, UAE, and Saudi Arabia Economics Group Project example

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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

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

12,000

0.05

32,000

0.05

28,000

0.05

72,000

0.05

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

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

36,000

0.15

24,000

0.04

12,000

0.02

72,000

0.05

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 …

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