Please answer the last two questions completely. All the information needed for the question are attached with the pictures and the question it self. Please only answers the last two question at the end of the question attached with the question. The information given is the master budget for CMRNA for each quarter of 2021 and for the year in total that is required to answers the last 2 questions

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CMRNA is a small-scale contract producer and seller of drugs and vaccines for clinical trials. The master budget will detail each quarter's activity and the activity for the year in total. CMRNA will base the 2021 budget on the following information: 1. Expected sales, in units, for the four quarters of 2021 and the first two quarters of 2022 are as follows: 2021 01 2,800 2021 02 15,000 2021 03 26,000 2021 04 35,000 2022 01 40,000 2022 02 43,000 The selling price for 2021 has been set at $40.00 per unit. CMRNA's fiscal year ends on December 31. All sales are on account. 80% of sales on account are collected in the quarter of sale; 20% of sales on account are collected in the following quarter. Assume that all the balance in accounts receivable {as of 31St December, 2020) will be collected in the first quarter of 2021. Assume no bad debts are incurred. 2. Each component requires the following direct inputs: - 4 micrograms (mcg) of direct material available at a price of $1.00 per mcg. - 0.002 hours of direct labour at a rate of $40.00 per hour. CMRNA has a policy of maintaining direct material ending inventory equal to 10% of direct materials needed for the next quarter's production requirements. All raw materials are purchased on account. 50% of a quarter's purchases are paid for in the quarter of purchase; the remaining in the following quarter. CMRNA has a policy of keeping ending finished goods inventory equal to 10% of next quarter's forecasted sales. There is no beginning or ending work-in-process inventory. Direct labourers are paid at the end of each month. 3. Total budgeted variable overhead costs for the 2021 year (at a level of sales estimated in Item 1 above) follow: Indirect labour 55,520 Employee benefits 83,280 Variable overhead is applied to components using a predetermined overhead rate based on annual direct Variable overhead is applied to components using a predetermined overhead rate based on annual direct labour hours. All variable overhead items are paid for in the quarter incurred. 4. The annual budget for fixed manufacturing overhead items follows: All xed overheads are paid evenly each quarter except for property taxes which are paid for in the third quarter of the year. Fixed overhead is applied to production using a predetermined overhead rate based on the estimated annual number of units produced. 5. Variable selling and administration expenses include commissions and other administrative expenses. Commissions are budgeted at 5% of sales dollars for the quarter. 80% of these commissions are paid in the quarter they incurred, while 20% are paid in the following quarter. Other variable administration costs are $2.00 per unit. These costs are paid for in the quarter they incurred. Annual fixed selling and administration expenses are as follows: Fixed selling and administration expenses are paid evenly over the four quarters of the year. 6. CMRNA makes quarterly income tax installments based on the projected taxable income for the year. The company is subject to a 30% tax rate. For the master budget, CMRNA assumes tax expenses incurring for the year 2021 are paid in cash evenly over the four quarters of the year 2021. 6. CMRNA makes quarterly income tax installments based on the projected taxable income for the year. The company is subject to a 30% tax rate. For the master budget, CMRNA assumes tax expenses incurring for the year 2021 are paid in cash evenly over the four quarters of the year 2021. 7. CMRNA plans the following financing and investing activities for the coming year\". - The company is planning to buy a piece of land, costing $70,000, in the last quarter of 2021. This piece of land will be held for future plant expansion. The company will pay cash for the land and will finance any resulting cash shortfall by drawing on its operating line of credit. - The company has an operating line of credit established with its bank. This allows the company to borrow in multiples of $5,000 to cover any cash shortfalls. All borrowing is assumed to occur at the beginning of the quarter in which the funds are required and all repayment is assumed to be made at the end ofthe quarter in which funds are available for repayment. Simple interest at the rate of 10% per annum is paid on a quarterly basis on all outstanding short-term loans. All repayments are in multiples of $1,000. - The company currently has $240,000 in an outstanding long-term loan with an annual interest rate of 9% and makes quarterly interest only payments at the end of each quarter. The loan is due in 2033. . The company outsources some of the manufacturing for $500,000. The company pays the outsourcing fee in cash at the end of the first quarter of year 2021. 8. The company's simplified balance sheet as of December 31, 2020 is as follows: -- -- Buildings and Equipment 2,020,000 Retained Earnings {350,000} 51,739,800 Total Liabilities and Shareholder's Equity $1,739,800 These balance sheet figures must be taken as given. Negative balances are in the parentheses. The current price of $40.00 per unit is set during the last year's pre-trial stage production. CM RNAplans to scale up the production to meet thegrowing demand. The resulting economies of scale allow the company to consider strategic pricingand compensation. The strategic price should satisfy the following criteriawThe price should be less than $40.00 per unit to beat other small-scale producersin price competitionJ-The company must achieveprofit margins (= Operating income/Sales} between 5% and 10%The company also needs to increaseemployee benefitsand compensationby $90,000 to retain skilled manufacturing workers and production engineers. Provide support for your strategic pricing and compensation based on the following discussion: Describe a business, industry, and regulatory environment that provide competitive advantages to firms maximizing profits. Describe the business environments that reward firms maximizing employee benefits and compensation. Discuss potential trade-offs (benefits and risks} in the strategic pricing and compensation in an industry or a business of your choice (e.g., services, media, luxury goods, retail, software engineering, manufacturing, real estate development and investment, bio-tech, fin-tech, advertisement, higher education, mining, oil and gas, agriculture, social work, professional services, etc.) SOLUTION CMRNA - Sales Budget For the year ended Dec. 31 2021 Q 2 Q5 24 year . Budgeted Sales (onit ) 2800 15000 26000 35000 78 800 Sealing Price $ 40 $ 40 $ 40 $ 40 $ 40 Total Expected Sale $ 1, 12,000 $6, 00, 000 $10, 40,000 $ 14 , 00,000 $ 31, 52,000 CMRNA - Schedule of Receipts For the year ended December 31 , 2021 Q2 Q3 Q4 Total Cash collection From Castormer In the ats of sale ( 807. ) $ 89, 600 $ 4. 80, 000 $ 8, 32,000 $ 11 , 20,000 $25, 21, 60 0 next ty . Sales ( 20% ) $ 22, 400 $1, 20, 000 $2, 08, 000 $5. 50 400 Account Recen for Dec 2020 ) $ 800 $ 800 Expected Cash Collects $ 90, 400 $ 5, 02,000 |$9, 52, 000 8 13, 28,000 $28, 72/ 800CMRNA - PRODUCTION BUDGET For the year ended December 31, 2021 Q 1 Q2 Q4 year @ 1 - 2022 Q2 ( 2022 ) Budgeted sales 43:00 2800 15000 26000 28 800 40006 35000 Add : Desired Ending In . FG 1500 2600 3500 4000 4080 4300 4300 17600 29500 39000 82800 44 300 Less: Beginning Inv. or FC 1500 2600 3500 4900 Budgeted production ( In Units ) / 4300 16100 26 900 35 500 82800 40300 CMRN - Direct Material Purchase Budget For the year ended December 31, 2021 QI Q 2 Q 3 Q4 Yous 21- 2022 Product ( Units ) 4300 16100 26900 35500 8280 0 40 300 Direct mat. Needo per Unit ( mcG ) 4 4 4 Direct mat. Needed ( inmcc ) 17200 64 400 1, 07, 600 142000 331200 / 1 1 16, 20 Add : Ending Iny. or RM 6440 10760 14 200 16120 16120 236 40 75160 121 800 158120 347 320 Less: Beg . Imy. Or RM Cimebs) 6 440 10760 14 POO Row Material Purchase . (In Lbs ) 23640 68 720 1, 11, 040 143 920 347320 Rate per Mcc $ 1.00 $ 1.00 $ 100 $ 1.00 Direct Material Purchoed $23140 $68720 $ 1, 11,000 $1 43 920 347320CMRNA - Schedule of Disbursement For materials for the year ended December 31. 2821 Q 2 QY year Direct material purchase $ 23 640 $ 68 720 $1, 1 1 0 4 0 $ 1 4 3 9 20 8 3 47320 Paid Supplier. in the Qto or Purchase S soy. ) $ 11820 834 360 $58520 $ 71960 $173 560 Inth Bt Followimpurch ( sol , ) 5 11820 16 34360 $ 535 20 5 1 , 01 707 Accounts payble for Dec . 2020 $ 30 $30 Total cash payment for $ 11850 $ 46180 $ 89880 / $1 27 480 $ 275390 purchase CMRNA - Direct Labour . Cost Budget For the year ended December 31, 2 021 Q 2 Q4 year Production ( units ) 4300 16100 26900 35500 . 82800 Labor has requires perunit $6. 002 $ 0.002 $ 0. 002 Total Direct lober has worke 22 54 7 1 166 ( x ) . lobox rate per hy. $ 40.00 $ 40. 00 $ 40.00 $ 40.60 Total Direct labor eat Cost $ 344 $ 1:288 $ 2152 $ 2840 $: 6 6 24