Chipango ltd$,$ produces and sells special nuts. The company is preparing its budget for the year $2021.$The budget will need to be approved by $30$th November$2020.$The forcasted bank overdraft as at $31$st December $2020$ is k$360,000.$The planned selling price of a nut is k$318.$Each of the months of March, June,September and November are expected to achieve $8\mathrm{.}5\%$ of the planned sales quantity.The remainder of the planned sales quantity is expected to be achieved equally in all of the other months.The sales receipts are $80\%$ of the current sales and the balance is spread equally over the next two months.It is the company policy to provide $2\%$ of the sales for unrecoverable debts.Variable cost per nut:Raw material requirement was $10$ kgs at the price of k$12$ per kg will be required.Direct labour hours are$18$ at hourly rate of k$5$ and the variable ovrrheads recovered at the rate of k$2$ per labour hour.The company has planned a target profit of k$1,440,000$ for $2020.$The fixed costs for the year are evenly planned as follows:

Prodction overheads k$2,160,000$

Administration overheads k$1,440,000$

Selling overheads k$720,000$

Total k$4,320,000.$Chipango ltd plans to settle k$632,500$ outstandind devidents in the third month of the new year.The materialsare paid for in the month following the purchases,Labour costs,variable and fixed costs are settled as they are incurred.The production of each month's sales is planned as $,40\%$ of each month's sales are produced in the month before and the balance is produced in the month of sale.The purchase of the direct materials required for each month's production is planned as follows:

a$.35\%$ of each month's direct materials requiredments are purchased in the month before the materials are required.

b$.65\%$ of each month's direct materials requirements are purchased in the month the materials are required,The inventory of direct materials and finished goods at $1$ January should assumed to be consistent with the above policies.

A new Finance Director, who peviously held a senior management position in a "not for profit" health organization,has recently been appointed.Whilst employed by the health service organization,the new Finance Director had been the manager responsible for the imlementation of zero$-$based budgeting system which proved highly successful.

You are required to:

$1.$ Calculate the total budget sales quantity$[$special nuts$]$ for the year $3021.$

$2.$Calculate the budgeted sales quantity for eachof the months of May andNovember.

$3.$Calculate the breakeven point in special nuts and revenue.

$4.$Calculate the margin of safetyas percentage of budgeted sales and comment on the results.

$5.$Prepare the production quantity$[$special nuts $]$ budget for eachof the threeof the year $2021.$

$6.$ prepare the direct materials purchases budget$[$in kilogram and value$]$ for the first three months of the year $2021$ and prepare the cash budget for the first three months of the $2021.$

$7.$Explain how the implementation of zero$-$based budgeting system in CT ltd may differ from the implementation of such a system in a 'not for profit' health organization.