Please help. I don't understand how to prepare purchase budget. Complete in excel.

1. Leo Corporation sells a product for $500 per unit. Its market share is 20 percent. The marketing manager believes that the market share can be increased to 30 percent with a reduction in price to $475. The product is currently earning a profit of $70 per unit. The president of Leo Corporation believes that the $70 profit per unit must be maintained. Calculate the target cost per unit 2. Oma Company has the following budgeted costs for 10,000 units: Manufacturing Selling & Administrative Total Variable Costs Fixed Costs $400,000 $150,000 200,000 50,000 $600,000 $200,000 Required: a. What is the markup on variable costs needed to break even? b. What is the markup on variable costs needed to obtain a target profit of $150,000? c. What is the markup on manufacturing costs needed to obtain a target profit of $250,000? 3. EMJB Company sells three products with the following seasonal sales pattern: Products: Quarter A B C 1 40% 30% 10% 2 30% 20% 40% 3 20% 20% 40% 4 10% 30% 10% Total 100% 100% 100% The annual sales budget shows forecasts for the different products and their expected selling price per unit as follows: Product Units Selling Price A 200,000 $10 B 160,000 40 C 400,000 16 Required: Prepare a sales budget in units and dollars by quarters for the company for the coming year. 4. Budgeted sales of gloves for Perfect Fit Hands for the first six months of the year 2014 are as follows: Months Unit Sales January 700,000 February 820,000 March 760,000 April 720,000 May 1,280,000 June 1,500,000 The beginning inventory for 2014 is 210,000 units. The budgeted inventory at the end of a month is 30 percent of units to be sold the following month. Purchase price per unit is $7 per unit. Required: Prepare a purchases budget in units and dollars for each month, January through May. 5. The Big Blackbird Company manufactures decorative scarecrows that have a standard cost of $3.50 per pound for direct materials used in the manufacturing process. During September, 30,000 pounds of materials were purchased for $4.00 per pound, and 24,000 pounds were actually used in making 5,000 scarecrows. There were no beginning inventories. Required: a. Determine the materials price variance assuming that materials costs are the responsibility of the materials purchasing manager. b. Determine the materials price variance assuming that materials costs are the responsibility of the production manager. c. Determine the material quantity variance if the standard materials for each scarecrow are 6 pounds. 6. Shailene Company has set labor costs at $48 per unit of output, based on 3 hours allowed to produce each finished unit. Last month, 3,000 direct labor hours were used, and 1,500 units of output were manufactured at a total cost of $72,000. Required: a. Determine the labor rate variance. b. Determine the labor efficiency variance. 7. Windy City Company has the following information pertaining to its Brick Division for this year: Bricks Fixed manufacturing expenses $ 70,000 Fixed selling and administrative expenses 60,000 Sales 600,000 Direct manufacturing costs (variable) 80,000 Variable selling and administrative expenses 140,000 Corporate expenses allocated to the brick division are $48,000. Calculate the brick division's contribution margin. 8. If a company has sales of $2,000,000, net income of $340,000, and an asset base of $1,000,000, what is its return on investment? 9. Mouser Company is evaluating a capital expenditure proposal with the following predicted cash flows: Initial investment: $110,000 Operations: Year 1 $40,000 Year 2 30,000 Year 3 55,000 Salvage value: -0- Additional information for interest rate of 12 percent: Present value of $1 - year 1 0.893 Present value of $1 - year 2 0.797 Present value of $1 - year 3 0.712 Present value of an annuity of $1, (3 periods) 2.402 Required: Determine the following values: a. Net present value of the investment at a discount rate of 12 percent b. Payback period c. Accounting rate of return using average investment 10. George is considering the following investment proposal: Initial investment: Depreciable assets (straight-line) $15,000 Working capital 10,000 Operations (per year for 4 years): Cash receipts $20,000 Cash expenditures 12,000 Disinvestment: Salvage value of equipment $2,000 Recovery of working capital 5,000 Discount rate 8 percent Period Present Value Factor 1 0.92593 2 0.85734 3 0.79383 4 0.73503 Required: Determine the following values: a. Payback period b. Accounting rate of return on average investment c. Net present value