b) Catty Corporation is preparing its annual budget for the year 2021. It manufactures and sells one type of watches, called Princess. The current unit selling price of Princess is $4,800. The marketing director believes that the price can be increased to $5,000 with effect from 1st October, 2021. The estimated sales volume for each quarter of 2021 are as follows: Quarter 1: 400 Quarter 2: 600 Quarter 3: 550 Quarter 4: 700 Sales for each quarter of 2022 are expected to be 650 units. Each unit of Princess required 6 units of component A and 2 units of component B. Current prices for component A and component B are $180 and $90 respectively. The company policy is to keep the ending inventory equals to 50% of the next quarter sales. The opening inventory balance as at 31 December 2020 was 300. Required: Prepare the following budget for each of the four quarters in 2021. . Sales budget (in $ and in units) ii. Production budget (in units) iii. Direct material budget (in $ and in units) 15 marks b) Mix Ltd produces an electronic part, Product X. The fixed cost of the company is $30,000 per month. The unit selling price of Product X is $180 while the unit variable costs is $70. The monthly target profit of the company is $80,000. Required: i) Calculate the minimum sales in unit and the total sales dollars to enable the company to be break-even. ii) Determine the number of units to be sold under the monthly target profit. 10 marks c) Beauty Limited has 3 retail shops. The budgeted results for the next quarter are as follows: Shop A Shop B Shop C $'000 $'000 $'000 Sales 1,800 2,100 1,300 Cost of good sold (980) (1,500) (730) Profit margin 820 600 570 Sales persons' salaries (180) (20) (250) (30) (170) (40) (30) Depreciation of sales office equipment Apportionment of warehouse rent Depreciation of warehouse equipment Regional and headquarters costs Reported profit / (loss) (30) (25) (30) (18) (20) (250) (300) (280) 320 -35 32 Required: Analyse the above budgeted results and consider whether Beauty Limited should discontinue the operation of Shop B. 10 marks