Question

Lulu Ltd is a manufacturer of luxury sport life-style products, including reversible yoga mats made of rubber and treated with an antibacterial chemical called amirco. While the company performed beyond expectations in the last financial year, Lexi Youi, the managing director of Lulu Ltd., is worried about the ever- increasing price of raw materials and its effect on the company's profit margin and Lexi Youi has asked you to prepare some budgets. Assume you are completing all the operating budgets for Lulu Ltd, which of the following budgets listed below must be prepared first as the numbers in this budget will be required by subsequent budgets? O a Raw materials budget O b. Overhead budget Oc Direct labour budget od Production budget e COGS budget