Meadow Limited. has provided the following projected information: Year 1 Year 2 Sales units Qtr 1 Qtr 2 Qtr 3 4,000 5,500 Qtr 4 Sales units Qtr 1 6,000 6,000 7,500 Unit cost of production GHC Material X 8 litres @ GHC3per litre 34 Material Y 5 litres @ GHC4 per litre 20 Direct labour 28 Variable Overhead 15 97 1) The selling price is expected to be GHC90 per unit. 2) Sales costs are estimated to be 4% of projected sales revenue. 3) The inventory of finished goods at the start of quarter 1, year 1 is expected to be 1,200 units. 4) The inventory of finished goods held at the end of each quarter is projected to be 20% of the following quarter's sales volume. 5) Administration costs are estimated to be GHC2,000 per month in quarter 1 of year 1 rising by GHC600 per quarter from quarter 2 onwards. The company's budget manual requires each of the following preliminary budgets to be prepared in advance of preparing the company's overall budget: 1 Sales volume and sales revenue budget 2 Production volume budget 3 Purchases volume and purchases cost budget for each of raw materials X and Y 4 Selling & administration overheads budget 5 Labor budget 6 Variable overhead budgets Required: a. Describe the content of and relationship between each of the preliminary budgets (i) to (iii) mentioned above, in the context of the overall company budget. EV (8) b. Prepare sales budget for item number (i) AP (9) C. As a manager explain the four main types of decisions that would require capital budgeting decisions to be taken using AIT as a suitable example. AP (8) Total [25]