a.Analyze budgets and make appropriate decisions by explaining budgeting and its purpose and use that to explain how financial decisions are based on budgeting.

b. Explain the calculation of unit costs and makes pricing decisions using relevant information.(Explain by calculating the unit costs and make pricing decisions using relevant information using below case study;

Lomas corporation operates a plant ith a monthly capacity of 500,000 cases of tomato sauce. Lomas is presently producing 300,000 cases per month. Del Valle has asked Lomas and two other companies to be supplying 150,000cases each month for the next four months?

Cost per case

variable manufacturing 38

variable marketing and distribution 13

fixed manufacturing 14

fixed marketing and distribution 15

TOTAL 80

If Lomas makes the extra 150,000 cases,the existing total fixed manufacturing overhead (4,200,000 per month) would continue,plus an additional 165,000 of fixed overhead will be incurred per month. Total fixed marketing and distribution costs will not change. What price should Lomas bid?

c.Assess the viability of a project using investment appraisal techniques(use the data given in the brief to compare the different investment approaches. calculate and interpret the payback period,rate of return etc

compare the following investment appraisal approaches,payback period,and rate of return,net present value and IRR of firm by using given data as an example. use various interest rates to explan the concept.

Year: 0 1 2 3 4 5 6

income amounts -1000 200 200 200 200 200 200