Hodgeheg Homes Ltd based in Highland Perthshire manufacture nesting boxes for hedgehogs and following a consultation period with landowners and estate management companies, have come up with a new design $($The Supreme Hodgeheg Home$)$ which will hopefully be more durable and sustainable. Market research has been carried out and there is a promising amount of interest in the new product in Scotland, and growing interest in other areas of the UK$.$ The company need to ensure that they can make a reasonable profit from the new design, whilst being able to expand their market share. The following information has been gathered:

Expected Sales

$\backslash$table$[[$Mouth$,$Scotland,England,Wales,Ireland$],[$April$,650,220,185,145],[$May$,620,205,190,185],[$June$,700,208,187,305],[$July$,687,276,224,413],[$August$,732,285,218,365],[$September$,749,292,286,423]]$

The projected selling price will be $f95$ per unit.

$2.$ The company will need to have a level of buffer inventory to ensure they can meet customer demand from month to month. The closing inventory should be$20\%$ of the following month's sales. October's sales are expected to be the same as September. For the purposes of this budget, you are asked to assume that total sales in November will drop slightly to $1,650$ units, and December sales to be $950$ units. $400$ units will be produced in March to ensure there is availability for orders we expect to receive in early April.

Task $1$

Using the above information you are to prepare the Sales and Production budgets for the The Supreme Hodgeheg Home.

The following additional information is available:

$($a$)$Variable costs per Hodgeheg House are?

Materials $31$ per unit

Labour $2$ hours are required at a rate of $9$ per hour

Variable production costs $13$ per unit

Materials are paid for in the month before production, for the purposes of this budget only the raw materials required for production should be included. Labour costs are paid in the month of production, Variable production costs are paid for in the month after production, A bonus of $2$ per unit for each unit produced over $1,500$ units is paid in the month following production.

$($b$)$ Fixed production overheads each month are as follows:

Rent and Rates $8\mathrm{.}900$

Management Salaries $4\mathrm{.}650$

Power $21875$

Depreciation $($machinery$)2,500$