1. Rupert store in Prince Rupert sells 11,000 diet free coca cola for $ 4 each and 12,000 regular coca-cola for $ 3.5 each in 2019. Because of new regulation and awareness among consumer consumer are decreasing consumption of regular coca-cola and is expected to decrease by 10% next year. However, awareness of sugar is expected to result in a 7% increase in diet coca-cola volume. Rupert store feels that if they lower his price for regular coca cola to $ 3.40 per can, he will have to face only a 4% decline in coca-cola sales in 2020. [ 15 marks] Required; - Prepare a 2020 sales budget for Rupert store assuming that Rupert store prices at 2019 levels. - Prepare a 2020 sales budget for Rupert store assuming that Rupert store lowers the price of a regular coca cola to $ 3.40 per can.

- Should Rupert store lower the price of a regular coca cola to $ 3.40 per can if its goal is to maximize sales revenue?

2. What is budgetary slack and what are the advantages and disadvantages of budgeting? [ 5 marks]