2) Collection estimates: * Within the month of sale: 5% * During the month following the sale: 80% * During the second month following the sale: 15% * Selling price 100 /unit (3) Payment for raw materials is made in the same month. (4) Salary 11,250, Lease payment 3,750, Misc. Exp. 1,150, are paid each month (5) Monthly Depreciation 15,000 (6) Income tax 26,250 each in September and December. (7) Payment for research in October 75,000 (8) Opening Balance on 1st January 55,000. (9) Marketing cost 10,000 per month (10) Rental costs 15,000 per month You have been asked to work with the hospitality and catering startup business that your firm has just taken as a client the business is particularly in need of support and guidance with budgeting and how it can be used to inform efficient resource allocation and support effective control and decision making the founder of the business is investing 100,000 pound of their own capital and also has secured a business loan of 50,000 . TASK 4 - SCENARIO 4 (LO4) You have been asked to prepare an accounting memorandum that includes the following. 1. production of 12 months cash budget that makes use of variance analysis to show the impact of different individual scenarios below. 2. discounting prices by 20% which in turn increased sales volume per month by 10%. 3. increasing the marketing budget by 10% per annum which in turn generates an additional 20% in sales revenue. 4. offering suppliers one-month straight credit. 5 . reducing rental or property related cost by 15% per month 6. an evaluation of the role that budgets play in the effective planning and control of resources in an organization such as your clients. 7. this will include both benefits and any limitations of using budgets and the extent to which they can help identify problems and corrective actions an outline of range of budgetary control solutions with justification to support organization decision making and ensure efficient and effective deployment of this