Sandown Limited. has provided the following projected information: Year 2 Sales units Qtr 1 Year 1 Sales units Qtr 1 5,000 Qtr 2 6,500 Qtr 3 7,000 Qtr 4 8,000 8,500 Unit cost of production Material X 8 litres a GHe3per litre Material Y 5 litres a GHe4 per litre GH 24 20 Direct labour 18 Variable Overhead 12 74. The selling price is expected to be GHE100 per unit. Sales costs are estimated to be 4% of projected sales revenue. The inventory of finished goods at the start of quarter 1, year 1 is expected to be 1,000 units. 1. 2. 3. 4. The inventory of finished goods held at the end of each quarter is projected to be 30% of the following quarter's sales volume. Administration costs are estimated to be GHe3,000 per month in quarter 1 of year 1 rising by GHe500 per quarter from quarter 2 onwards. 5. The company's budget manual requires each of the following preliminary budgets to be prepared in advance of preparing the company's overall budget 1 Sales volume and sales revenue budget Production volume budget Purchases volume and purchases cost budget for each of raw materials X and Y Selling & administration overheads budget Labour budget Variable overhead budget 2 3 5 6 Required: a. Describe the content of and relationship between each of the preliminary budgets (i) to (iii) mentioned above, in the context of the overall company budget. b. Prepare quarterly budgets for items (1) to (vi) mentioned above and the annual budgeted statement of profit.