Please provide answers for Assumptions, Sales Budget, and Production Budget. Thank you!

Frenchies: Creating and Using a Master Budget BACKGROUND Frenchies is a medium-sized regional bakery that specializes in providing orders to grocery and convenience stores Because of the popularity of its brand, it has also opened a small caf for walk-in business. In order to maintain its high quality standard, Frenchies produces only three products: breakfast muffins, fresh bread, and chocolate chip cookies Athough business has been good in the past few years, a lucky contact Wth a large chain has recently allowed it to expand its brand of the local region. Growth has been high since the new contract went into effect Andy Griff, the chief executive officer (CEO) and founder, has wanged a meeting with a venture capital finn next week Hopefully the meeting will result in the sale of some of Frenchies stock and an opportunity to establish a significant line of credit with the venture capital firm These extra funds, f Andy can secure them, should provide sufficient money to meet Frenchies growth targets for the few years The venture capital firm's assessment team has asked Andy to provide a quarteny master budget for the year tat Just comp'ete with pro tonna financial statements, at the meeting. They have expressed special interest in Frenchies eamings per share (EPS), cash now from operations, and profit margins, indicatng that good numbers in these areas will be essential for final approvaL In typical managerial style, Anty immediately assigned the task of creating the budget to Nicole Quanerman, who has just been hired as Frenchies controller Since this project is her first assignment, Nicole stated by making appointments with each of the divisional managers to gather information for the budget and also to beam rnore about the company. PARTI: CREATING THE BUDGET MEETINGS WITH OIVISIONAL MANAGERS MEETING WITH THE SALES DEPARTMENT walking down the hallway towards the office of Jeff Barza, the sales nzlager, Nicole read the results for last quarter which ended on December 31, 2018 Frenchies sold 45,000 onedozen packages of muffins for $5.50 each, 65,000 packages of cookies for $4.75 each, and 85,000 one-dozen loaves of bread for $525 each. When Nicole got to Jets office, he mtjoned her in to have a seat "Is it time for our meeting already?" he asked. "Where does the day go? MVho knows? It seems like one minute I'm having my mming muffin and the next I'm saying good- bye to everyone," Nicole said with a sigh "Theres never tme to get everything done. And now I get to do the budget" Jeff started to laugh. "Thanks," she muttered. "l knew could count on your support" "I'm somj I just have to Iaugh at the amount of tme you are going to put something that Isnt really used anyway, except for setting bonuses, of course." "Not really used? dont know how Its been around here in the past, but this year, at least, the budget will prove to be a valuable tool." Nicole waved away Jeffs retort "Anyway, one way or another I have to create one and, as you know, the process always stans Wth projected sales. Do have a copy of last quaters results?" "Yes, right here somewhere," Jeff said, shutting papers around his desk. Got it!" he exclaimed, waving it gently as he pulled it from under a stack of other papers. "Now, what do want to kno'w exactly? Andy thinks that since we have established a strong following both locally and in our new mar*ets, we can raise our prices slightly next year without a sharp drop in sales. He was thinking $6.00 for muffins, $525 for cookies, and $5.75 for bread What do you think? "l agree," Jeff said eagerly. "I've been pushing that for years Of course, I think that sales will drop some in the first quarter of next year. They always drop off a bit aner the holidays anyway, but with the increase in sales price I'd say a 20 percent drop from the fourh quarter results we have here " He looked up