Master Fun Inc. manufactures and sells one product -a snowmobile for pleasure use. For the coming year, Master Fun expects to sell 900 snowmobiles at a price of $7,600 each. Direct material consist of $4,100 per unit and direct labor of $1,600 per unit (80 hours). Manufacturing overhead is applied at $13 per direct labor hour. The beginning inventory is 50 snowmobiles and management would like to increase the inventory by 30 snowmobiles by the end of the year.

1. What is the budgeted revenue?

2. How many snowmobiles should be budgeted for production?

3. How much is the direct labor budget?

4. If the sales price increases to $8,000, management expects the number of snowmobiles to be sold will only decrease by 4%. What is the impact on budgeted revenue and budgeted production?