Ahmed and Johannes are the two directors of AJ Ltd, a UK manufacturing company headquartered in London who are launching a new manufacturing division (based in London) on the 1st July, which will initially manufacture a single component specifically for the healthcare industry. The company accountant who has always used the 'traditional' incremental budgeting technique has suddenly resigned and as a result, Ahmed has approached you to prepare the functional and cash budgets for the first 6-month period. Each of the new divisions departmental managers has provided Ahmed with the following information in respect to the forthcoming period: Sales information Sales are expected to grow by 8,000 units per month starting at a level of 50,000 units in July. The sales price is 7.25 per unit with 30% of customers paying in cash, the remainder (70%) will be given 30-day end of month credit payment terms