1. A hospitality chain prepares a master budget: Sales revenue $5,000,000, variable costs $2,000,000, fixed costs $1,000,000, expected cash collections $4,500,000.
   • Requirements:
     • Prepare a master budget including budgeted income statement and cash flow statement.
     • Calculate the budgeted contribution margin and net income.
     • Analyze budget variances and recommend corrective actions.
     • Discuss how budgeting improves financial control and decision-making in hospitality management.
     • Evaluate the impact of economic factors on budgeted performance and profitability.