Telco limited sells Local developed networks or LAN across Canada which are comprised of hardware costs of Fiber, Routers and Circuits per LAN Site. The LAN network are assembled by the network technicians and sales engineers of the company. The accountant at Telco limited has always prepared a budget that is calculated using only one driver, estimated volume of sales. He has asked you to help him set up a spreadsheet that can be used for sensitivity analysis in the budgeting process. This year, it appears that the company may not meet expectations on network sales which could result in a loss. The accountant is concerned that the company will incur a loss again next year and wants to develop a budget that will easily reflect changes in the assumptions. After gathering information about next year's operations, he will provide information using a what-if sensitivity analysis.

Direct Materials LAN Network:
Fiber	$12,000.00
Routers	$7,000.00
Circuit	$5,000.00
Direct Labour:
Hours	Assembly	60
	Networking	40
Cost Per Hour	Assembly	$60.00
	Networking	$100.00
Cost Per LAN	Assembly	$3,600
	Networking	$4,000
Inventory Information:
	Beginning	Target Ending
Fiber	$500,000	$750,000
Router	$300,000	$320,000
Circuit	$200,000	$275,000
Finished Goods (units)	2,000	3,000
Finished Goods (cost)	$125,000,000
Revenue Assumptions:
Selling Price per LAN Network	$50,000
Volume of LAN Sales	10,000

1. Create a spreadsheet with a data input box at the top. Into this box put all the relevant assumption data. This box should be formatted with a border to separate the input data from the cell-referenced data. Set up each schedule with cell references to information in the data input box. Any changes made to information in this box should be reflected through all the schedules that you set up. As you proceed through Parts 2 and 3 of this problem, more information will be given that needs to be located in the assumptions box, such as next year's estimated variable and fixed manufacturing overhead, as well as support department costs. You will need to leave space in the data input box for this information or add more rows as you develop the spreadsheet.
2. Prepare a revenue budget.
3. Prepare a production budget in units.