Operating Budget (Business Plan) for the year ending December 31, 2023 Management needs to issue a budget and profit forecast for the year ending December 31, 2023, and use it to evaluate actual 2023 operating results. 1) Prepare a Sales Revenue Budget. a) Keep it simple; 1 product is good. b) Make up unit sales volume, unit price, and total sales revenue for the previous yoar, 2022. c) Make up unit sales volume, unit price, and total sales revenue for the budget year, 2023. (show a realistic increase from the previous year, 2022.) 2) Prepare a Production Budget. a) Use year 2023 Sales Units. b) Beginning inventory on Jan. 1, 2023 should be at least 10% of your year 2022 sales units. c) Ending inventory on Dec. 31, 2023 should be at least 10% of your year 2023 sales units. 3) Propare one Direct Materials (DM) Purchases Budget. a) Keep it simple; 1 type of material is good. b) DM Budgot Assumptions: 1) Use year 2023 product units from the Production Budget (step 2). ii) Make up expected Ending Materials inventory on Dec. 31, 2023. iil) Make up Beginning Materials inventory on Jan. 1, 2023. w) Make up DM quantity per product unit; Example: pounds (lbs) or kilograms (kg). v) Make up average DM cost per pound, kilogram, ote. 4) Calculate Average Budgeted Total Varlable Cont per product unit (Standard Cost). a) Make up additional Budget Assumptions: 1) Direct Materiais (DM): Use product specifications and DM cont per pound, kllogram, ate. from your DM Budget (Step 3, IV and v ). ii) Direct Labor (DL): Determine DL hours per product unit, and average DL rate per hour. Iii) Factory Overhead (FO): Make up a Prodetermined Factory Overhead Rate, and use it to apply FO cost to each unit of your product. b) How much does it cost to manuhcture each unit of your product? Show calculation, please. 5) Prepare a Budgeted Income Statoment for the year 2023. (use CVP format or refor to Exhiblt 8, toxt pg. 262). Additional Budget Assumptions: 1) Use product units and Sales Revenue from your Sales Revenue Budget (step 1). ii) Use Average Variable Cost per product unit from step 4 above. iii) Make up fixed Selling and Admin (period) cost for the year 2023 (one number)- h) Piease budgot a Not income (profit) for the year 2023. No losses, please. a) Your Budget Contribution Margin (CM) Ratio (round to 0.00). b) Breakeven Sales Units (round to nearest unit). c) Break-even Sales Revenue (round to nearest $1 ). d) Margin of Safety percentage at your Budget Net Income. e) Calculate the units needed to be produced and sold to achieve a Net Income that is at least 20% higher than your budgeted Net Income