CoursHeroTranscribedText: Morning Glory Manufacturing (M) Sdn Bhd is preparing budget for the year ended 31 December 2016. The company manufactures and sells one product. The selling price is RM150 per unit but this will increase to RM160 as from 1 July 2015. The budgeted sales volumes are: Units January to March 40,000 April to June 50,000 July to September 30,000 October to December 45,000 Sales for January to March 2017 are expected to be 40,000 units. Each unit of products uses 3 units of Component A, 2units of Component B and 1 unit of Component C, the current unit price of which are as follows: RM Component A 9.00 Component B 6.00 Component C 25.00 Component A and B are expected to increase in price by 10% from 1 April 2016. Component C will rise by 5% from the same date. Labour costs for the product are RM30 per unit, this will increase by 5% from October 2016. Variable production overhead will be RM10 per unit. Fixed production overhead is budgeted at RM 264,000 for the year and incurred evenly over each period. Stock of finished units is budgeted at 20% of the next three month period's sales. No stock of components are held