Project Living Skies Manufacturing Lid. (a Canadian Company located in Prince Albert) produces and sells a range of very innovative lightweight yet highly durable types/styles of tires for ATVs, and Quads. Living Skies sells directly to businesses (B2B) (e.g., ATV and Quad manufacturing and retail companies), who then ultimately either install the tires on their products and/or sell the tires to individual consumers. Living Skies Manufacturing is nearly finished its fourth year of operations (the current date is December 15th, 2019) and is managed by a team of four of its owners. The owners/managers at Living Skies Manufacturing have approached you to prepare a detailed Master Budget for the next fiscal year (January to December 2020) in order to better plan and control their operations. The Master Budget should detail each quarter's activity, as well as the activity for the year in total. Your Living Skies Manufacturing Ltd. Base Case forecasted budget should be based on the following budget information: COMM 210 Project Summer 2019 1. Expected sales, in units, for the four quarters of 2020 and the first two quarters of 2021 are as follows (the sales forecast data signals that sales are somewhat cyclical - that is demand is greater is Quarter's two and three each year given this is the spring and summer period): Quarter one 9.900 Quarter two 10,725 Quarter three 11.300 Quarter four 8,400 Quarter one (2021) 8,800 Quarter two (2021) 10,750 The selling price for 2020 has been set at $84.75 per unit. All sales are on account. Sixty-two percent (62%) of sales on account are collected in the quarter of sale; twenty-three percent (239%) of sales on account are collected in the following quarter; and the final fifteen percent (159%) are collected in the second quarter following. Assume that eighty percent (80%) of the balance in accounts receivable (as of 313 December, 2019 Balance Sheet) will be collected in the first quarter of 2020 and the remaining twenty percent (20%) in the second quarter of 2020. Assume no bad debts are incurred.5. Variable selling and administration expenses include commissions and other administrative expenses. Commissions are budgeted at 5% of sales dollars for the quarter. Eighty percent of these commissions are paid in the quarter earned, while 20% are paid in 3 COMM 210 Project Summer 2019 the following quarter. Other variable administration costs are $2.00 per unit. These costs are paid for in the quarter incurred. Estimated annual fixed selling and administration expenses are as follows: Sales salaries $ 152,000 Administration salaries 100,000 Travel 24,000 Insurance 3.400 Utilities 2,800 Depreciation 12,000 Other 2.800 TOTAL $ 297.000 Fixed selling and administration expenses are spread evenly across quarters for budgeting purposes. Applicable fixed expenses are paid for quarterly