AN . the Trackit. The owners are excited about the future profits that the business will generate They have forecast that sales will grow to 2,600 Trackits per month within five months and will be at that level for the remainder of the first year The owners will invest a total of $250,000 in cash on the first day of operations that is the first day of July). They will also transfer non-current assets into the company Extracts from the company's business plan are shown below The forecast sales for the first five months are: Month Trackits (units) July 1.000 August 1.500 September October 2.400 November 2.600 2.000 The selling price has been set at $140 per Trackit. Sales receipts Sales will be mainly through large retail outlets. The pattern for the receipt of payment is expected to be as follows: Time of payment of sales value Immediately 15 One month later 25 Two months later 40 Three months later 15 The balance represents anticipated bad debts. *A4discount will be given for immediate payment Production The budget production volumes in units are: July August September October 1,650 2.120 1.450 HOLMES Variable production cost The budgeted variable production cost is $0 per unit, comprising $ Direct materials Direct labour 10 Variable production overheads Total variable cost Direct materials: Payment for purchases will be made in the month following receipt of materials. There will be no opening inventory of materials in July. It will be company policy to hold inventory at the end of each month equal to 20% of the following month's production requirements. Direct labour will be paid in the month in which the production occurs. Variable production overheads: 65% will be paid in the month in which production occurs and the remainder will be paid one month later Fixed overhead costs Fixed overheads are estimated at $340,000 per annum and are expected to be incurred in equal amounts each month of the dead be paid in the month in which they are incurred and in the following month The balance represents depreciation AN . the Trackit. The owners are excited about the future profits that the business will generate They have forecast that sales will grow to 2,600 Trackits per month within five months and will be at that level for the remainder of the first year The owners will invest a total of $250,000 in cash on the first day of operations that is the first day of July). They will also transfer non-current assets into the company Extracts from the company's business plan are shown below Sales The forecast sales for the first five months are: Month Trackits (units) July 1.000 August 1.500 September October 2.400 November 2.000 The selling price has been set at $140 per Trackit. Sales receipts Sales will be mainly through large retail outlets. The pattern for the receipt of payment is expected to be as follows: Time of payment of sales value Immediately 15 One month later 25 Two months later 40 Three months later 15 The balance represents anticipated bad debts. *A4discount will be given for immediate payment Production The budget production volumes in units are: July August September October 1.650 2.120 1.450 HOLMES ENTITLE Variable production cost The budgeted variable production cost is $80 per unit, comprising $ Direct materials 60 Direct labour 10 Variable production overheads Total variable cost Direct materials: Payment for purchases will be made in the month following receipt of materials. There will be no opening inventory of materials in July, it will be company policy to hold inventory at the end of each month equal to 20% of the following month's production requirements Direct labour will be paid in the month in which the production occurs. Variable production overheads: 65% will be paid in the month in which production occurs and the remainder will be paid one month later Fixed overhead costs Fixed overheads are estimated at $340,000 per annum and are expected to be incurred in equal amounts each month of the dead be paid in the month in which they are incurred and 15 in the following month the balance represents depreciation AN . the Trackit. The owners are excited about the future profits that the business will generate They have forecast that sales will grow to 2,600 Trackits per month within five months and will be at that level for the remainder of the first year The owners will invest a total of $250,000 in cash on the first day of operations that is the first day of July). They will also transfer non-current assets into the company Extracts from the company's business plan are shown below The forecast sales for the first five months are: Month Trackits (units) July 1.000 August 1.500 September October 2.400 November 2.600 2.000 The selling price has been set at $140 per Trackit. Sales receipts Sales will be mainly through large retail outlets. The pattern for the receipt of payment is expected to be as follows: Time of payment of sales value Immediately 15 One month later 25 Two months later 40 Three months later 15 The balance represents anticipated bad debts. *A4discount will be given for immediate payment Production The budget production volumes in units are: July August September October 1,650 2.120 1.450 HOLMES Variable production cost The budgeted variable production cost is $0 per unit, comprising $ Direct materials Direct labour 10 Variable production overheads Total variable cost Direct materials: Payment for purchases will be made in the month following receipt of materials. There will be no opening inventory of materials in July. It will be company policy to hold inventory at the end of each month equal to 20% of the following month's production requirements. Direct labour will be paid in the month in which the production occurs. Variable production overheads: 65% will be paid in the month in which production occurs and the remainder will be paid one month later Fixed overhead costs Fixed overheads are estimated at $340,000 per annum and are expected to be incurred in equal amounts each month of the dead be paid in the month in which they are incurred and in the following month The balance represents depreciation AN . the Trackit. The owners are excited about the future profits that the business will generate They have forecast that sales will grow to 2,600 Trackits per month within five months and will be at that level for the remainder of the first year The owners will invest a total of $250,000 in cash on the first day of operations that is the first day of July). They will also transfer non-current assets into the company Extracts from the company's business plan are shown below Sales The forecast sales for the first five months are: Month Trackits (units) July 1.000 August 1.500 September October 2.400 November 2.000 The selling price has been set at $140 per Trackit. Sales receipts Sales will be mainly through large retail outlets. The pattern for the receipt of payment is expected to be as follows: Time of payment of sales value Immediately 15 One month later 25 Two months later 40 Three months later 15 The balance represents anticipated bad debts. *A4discount will be given for immediate payment Production The budget production volumes in units are: July August September October 1.650 2.120 1.450 HOLMES ENTITLE Variable production cost The budgeted variable production cost is $80 per unit, comprising $ Direct materials 60 Direct labour 10 Variable production overheads Total variable cost Direct materials: Payment for purchases will be made in the month following receipt of materials. There will be no opening inventory of materials in July, it will be company policy to hold inventory at the end of each month equal to 20% of the following month's production requirements Direct labour will be paid in the month in which the production occurs. Variable production overheads: 65% will be paid in the month in which production occurs and the remainder will be paid one month later Fixed overhead costs Fixed overheads are estimated at $340,000 per annum and are expected to be incurred in equal amounts each month of the dead be paid in the month in which they are incurred and 15 in the following month the balance represents depreciation