Management Accounting For Decision Makers (c) Prepare a budgeted income staneme for the whole or the six-monin penou ending ou November (A monny breakdown or promtis nor required.) (d) What problems is Newtake Records Ltd likely to face in the next six months? Can you suggest how the business might deal with these problems? 6.8 Brown and Jeffreys, a West Midlands business, makes one standard product for use in the motor trade. The product, known as the Fuel Miser, for which the business holds the patent, when fitted to the fuel system of production model cars has the effect of reducing petrol consumption. Part of the production is sold direct to a local car manufacturer, which fits the Fuel Miser as an optional extra to several of its models. The rest of the production is sold through various retail outlets, garages and so on. Brown and Jeffreys assemble the Fuel Miser, but all three components are manufactured by local engineering businesses. The three components are codenamed A, B and C. One Fuel Miser consists of one of each component. The planned sales for the first seven months of the forthcoming accounting period, by channels of distribution and in terms of Fuel Miser units, are as follows: Jan Feb Mar Apr May June July Manufacturers Retail and so on 4,000 4,000 4,500 4,500 4,500 4,500 4,500 2,000 2,700 3,200 3,000 2,700 2,500 2,400 6,000 6,700 7,700 7,500 7.200 7,000 6,900 The following further information is available: 1 There will be inventories of finished units at 1 January of 7,000 Fuel Misers. 2 The inventories of raw materials at 1 January will be: Aa