As a first step, Jasmine approaches you to assist her in preparing operating budgets for the next three months October, November and December, and provides you with the information below concerning the proposed venture.

The jam will be produced in bulk by JJJ Ltd for another company to package and market. The current price of local fruit is fairly stable, with strawberries costing $4.30 per kg. A high-quality sugar extract, costing 95 cents per kg is also used to make the jams. The 1 kg jam recipe requires 0.65kg of strawberries and 0.35 kg of sugar. Jasmine is confident that the company can sell 800 kgs of Strawberry Jam in the first month of operations with sales increasing at a rate of 10% per month for the first six months when sales will then stabilise. The present market price is $15 per kg for Strawberry Jam. These prices are expected to remain constant for the next three months.

Please do the sales budget

October Sales Budget November December Total kgs Selling price Budgeted Sales