PT manufactures and sells a number of products. All of its products have a life cycle of up to six months. PT uses a four-stage life cycle model (Introduction; Growth; Maturity; and Decline) and measures the profits from its products at each stage of their life cycle. PT has recently developed an innovative and unique product, and has decided to launch the product with a market skimming pricing policy. However, PT expects that other companies will soon try to enter the market with a similar product. This product is generating significant unit profits during the Introduction stage of its life cycle. However, there are concerns that the unit profits will reduce during the other stages of the products life cycle. Required: 1.1 For each of the (i) growth and (ii) maturity stages of the new products life cycle, explain the likely changes that will occur in the unit selling prices AND in the unit production costs, compared to the preceding stage. (14) 1.2 Explain four (4) benefits that would result from the introduction of a budgeting system by a company like PT.