R Limited manufactures three products A, B and C. You are required: (a) Using the information given below, to prepare budgets for the month of January for (i) sales in quantity and value, including total value; (ii) production quantities; (iii) material usage in quantities; (iv) material purchases in quantity and value, including total value; (Note that particular attention should be paid to your layout of the budgets.) (b) To explain the term 'principal budget factor' and state what it was assumed to be in (a).

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Sales: Materials used in the company's products: Material Unit cost Quantities used in: Product Quantity Price each (units) . () ABC 1000 100 2000 120 1500 140 M2 M3 4 6 9 M2 M3 (units) (units) (units)