PLZ PLZ HELP HERE

The budgeted statement of Comprehensive Income and Net Assets for GFX Industries are given below:

The current manufacturing facility is under-utilised and there is a proposal to extend sales to a supermarket chain with nationwide stores. However, the supermarket will sell the product under its own brand name.

Estimated effects of the proposal are;

1. Additional annual supermarket sales of 10,000 boxes at 30 per box.

2. Cost of direct materials would be reduced as a result of 8% quantity discount on all purchases and variable costs are expected to increase by 2%.

3. Extra supervisory and administrative staff will be required at a cost of 20,000 per annum

4. Market research has indicated that sales to existing retail outlets would fall by 10%. There will be no change in selling price to these customers.

5. Inventory and payables would increase by 40,000 and 25,000 respectively and the credit period extended to supermarket will be twice that allowed to existing customers.

Required:

Prepare the revised budgets to evaluate this proposal. Specifically you should:

1.	Prepare a revised budgeted statement of comprehensive income and a statement of net assets employed incorporating the results of the proposal i.e. Revised Sales Budget, Raw Material, Direct Labour, Variable Costs and workings.
2.	Calculate the effect on profit of the changes resulting from the proposal. Specifically calculate the Per Unit and Total Contribution for the old budget and the new budget.
3.	Advise management on the suitability of the proposal making any further calculations you consider necessary and adding any comments or reservations you think relevant.

Budgeted Statement of Comprehensive Income For the year ended 31st December 2021 Sales (25,000 boxes containing standard packets) 900,000 Direct Materials Direct Labour Variable Overhead Fixed Overhead (350,000) (160,000) (120,000) (140,000) (777,000) 130,000 Profit Budgeted Net Assets as at 31st December 2021 Non-Current Assets at net book value 375,000 Working Capital Receivables Inventory Payables 80,000 110,000 (50,000) 140,000 515,000 Net Assets Employed