Persona Berhad manufactures and sells a sports product. The budgeted income statement contained in the master budget for the forthcoming year is as follows. The directors wish to know what the budgeted profit will be if a higher quality material is used. This will increase material costs per unit by 10% but sales volume will be increased by 5%. There will be no change in the unit selling price. Assumptions The budgeted sales volume will increase to 21,000 units and, in the absence of information to the contrary, it is assumed that there will be no changes in the total fixed overhead cost incurred and no changes in the variable labour and overhead costs per unit. Required: a) Prepare a revised budgeted income statement taking into account the assumptions stated above. b) Analyse under what circumstances business managers can perform sensitivity analysis. c) Why do organisations prepare budgets and what are the implications for preparing budgets using the traditional methods