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please answer as soon as possible. thank you Metals Limited manufactures reinforcement products used in West Midlands Province's civil construction industry. Trust Metals currently sell

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please answer as soon as possible. thank you

Metals Limited manufactures reinforcement products used in West Midlands Province's civil construction industry. Trust Metals currently sell all its products in its factory shop. Its preliminary budget is provided below. Budgeted Income Statement for the Year Ending 31 December 2022 Sales (20,000 boxes) 1,000,000 II Direct materials Direct labour Variable overhead Fixed overhead (450,000) (120,000) (90,000) (150,000) (810,000) 190,000 Profit Budgeted Net Assets as at 31 December 2022 E Non-current assets 610,000 Receivables Inventory Payables 80,000 70,000 (40,000) 110,000 Net assets employed 500,000 Trust Metals Limited's manufacturing plant had spare capacity and a proposal is being considered to increase its production quantity and engage a distributor to sell under the distributor's own brand name. The estimated effects of the proposal are: Additional annual distributor sales of 15,000 boxes at 20 per box. Cost of direct materials would be reduced as a result of 3% quantity discount on all purchases. Extra supervisory and administrative staff will be required at a cost of 20,000 per annum. Market research has indicated that sales to existing retail outlets would fall by 8%, there will be no change in sellin 'o thos customers. Inventory and payables would increase by 20,000 and 20,000 Trust Metals Limited's manufacturing plant had spare capacity and a proposal is being considered to increase its production quantity and engage a distributor to sell under the distributor's own brand name. The estimated effects of the proposal are: Additional annual distributor sales of 15,000 boxes at 20 per box. Cost of direct materials would be reduced as a result of 3% quantity discount on all purchases. Extra supervisory and administrative staff will be required at a cost of 20,000 per annum. Market research has indicated that sales to existing retail outlets would fall by 8%, there will be no change in selling price to those customers. Inventory and payables would increase by 20,000 and 20,000 respectively and the credit period extended to supermarkets will be twice that allowed to existing customers. Required: a) Prepare a revised budgeted statement of comprehensive income and statement of net assets employed incorporating the results of the proposal. b) Calculate the effect on profit of each of the changes resulting from the proposal. c) Advise management on the suitability of the proposal making any further calculations you consider necessary and adding any comments or reservations you think relevant

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