QUESTION 2 [20 MARKS] Lenanao Holdings sells paint for P500 per bucket and they incur variable costs of P260 per bucket. Fixed costs per month for Lenanao are P600,000. Last month, the company sold 3,500 buckets of paint but management was not pleased since they were targeting to make a profit of P360,000 which they did not manage to reach. REQUIRED a. Calculate the profit made last month with 3,500 buckets. (5 marks) b. Determine last month's margin of safety (in buckets) for Lenanao. (5 marks) c. Calculate the additional number of buckets that the company needed to make in order to arrive at their targeted profit? (5 marks) d. Determine the company's contribution sales ratio and calculate Lenanao's break- even point sales revenue (Pula). (5 marks) QUESTION 3 [20 MARKS] a. Explain the advantages and disadvantages of budgeting (8 marks) b. Discuss the following types of budgeting by comparing them from each other. i. Fixed budget (4 marks) ii. Zero-based budget (4 marks) i. Flexed budget (4 marks) Page 3 of 4