The below estimates of January 2022 is given below. Prepare flexible budget for 75% production level, 100% production level, and 125% production level for the month January 2022. As on date 1000% level corresponds to 100000 units production. Goat Ltd. Overheads At 100% Capacity Variable Indirect material Refer Cash Budget Indirect labour 80% of indirect material Direct material Refer Cash Budget Direct labour 70% of direct material Semi-Variable Overheads Factory Electricity (40% Fixed) 15000 Office Repairs (80% Fixed) 7500 Sales Expenses (15% Fixed) 8000 Fixed Depreciation in machinery 9000 Insurance for office employs 11000 Salaries for factory staffs 14000 Note: The estimate of Sales and Material of Jan 2022 is calculated as an average of the previous two month.

a. Ascertain the total cost of sales in amount and per unit for all the three capacity levels. b. Consider the cash budget given below; calculate the profit at 100% capacity level c. Provide atleast three managerial implications from the answer

Cash Position for May to December 2021 for 100% capacity level 2022 May June July August September October November December January Particulars Opening Cash Balance 15000 135000 284000 419000 545000 676000 793500 916500 1049500 Receipts: Credit 80000 80000 78000 72000 65000 69000 76000 63000 XXXX Cash 75000 80000 80000 78000 72000 65000 69000 76000 63000 Premium Cash receipt 15000 15000 15000 Total Cash Receipts (A) 170000 310000 442000 569000 697000 810000 938500 1070500 XXXX Payments: Indirect Materials 25000 20000 15000 11000 12000 8000 13000 11500 12000 Direct Materials 10000 6000 8000 13000 9000 8500 9000 9500 8000 Total Cash Payments (B) 35000 26000 23000 24000 21000 16500 22000 21000 20000 Closing Cash Balance (A-B) 135000 284000 419000 545000 676000 793500 916500 1049500 XXXX Note: The payments of materials are paid after one month. Sales: 50% cash and 50% credit; the credit part is paid next month.