PART 1 Funai Corporation is a Japanese manufacturer of video cassette recorders (VCRs) and was established in 1987. There is now increased competition in its markets and the firm expects to find it difficult to make an acceptable profit next year. You have been appointed as a management accountant at the company, and have been given a copy of the draft budget for the next financial year. Draft Budget for 12 months to 30th September 2019 (m)(m) 960 Sales revenue Cost of sales 374.4 192 172.8 Variable assembly materials ariable labour Factory overheads - variable fixed 43 (782.2) Gross profit Selling overhead - commission (variable) 38.4 108 fixed Administration overhead fixed Net profit 20 (166.4) 11.4 The following information is also supplied to you by the firm's financial controller, John Smith: a) Planned sales for the draft budget in the year to 30th September 2019 are expected to be 25% less than the total of 3.2 million VCR units sold in the previous financial b) The firm operates a Just-in-time stock control system, which means that it holds no c) If more than 3 million VCR units are made and sold, the unit cost of material falls by year. stocks of anv kind. 4 per unit. d) Sales commission is based on the number of units sold and not on turnover