Gatland produces three products and is currently producing its budget for next year with unit price and cost data shown below. Basic Standard Superior Selling price 32 100 124 Variable costs: Labour 6 24 48 Materials 8 26 7 Overheads 6 10 5 Market Demand 60,000 24,000 12,000 (units) The labour rate is budgeted at 6 per hour and fixed costs are 1,300,000 annually. a) b) c) Calculate the budgeted profit for Gatland for next year. Subsequently the production manager advises that there are only 228,000 labour hours available next year. Calculate the revised budgeted profit. Following further discussions it is decided that a minimum of 12,000 units of each product must be produced. Prepare a revised budget statement to show the maximum profit that can be achieved in the year. Discuss why companies may wish to produce minimum quantities of a range of goods, even when this causes a reduction in profit. Suggest some ways that Gatland may be able to overcome the shortage of labour and increase production. d)