Assume the following scenario:

FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables.

a) Considering the Production Budget, assume that upon completion of the year-end inventory physical count you discover that 2,000 of Box P were damaged by a bug infestation and that 500 of Box C were missing, most likely stolen. Describe how the damaged and missing units can affect the companys operations, you mist list 3 potential issues. Also, describe how the production budget would be affected.

b) Considering Direct Labor Budget: assume that the state where your company has it warehouse located has just raised it minimum hourly wage rate from $12.00 per hour to $15.00 per hour as the cost of living has increased substantially over the years. Can the change in wages affect the sales price? Identify 2 factors that could make it impossible to increase the sales price. If increasing the sales price is not an option then what other options to address the increase in costs would you recommend if the company is trying to still meet its budgeted target profit?

Please write 6-10 sentences for each question.