The Director of Sales requests you to create a budget for a product for each of the months in the next year's quarter. Select a product of your choice that to be offered for sale at a retail store at a location of your choice. Make reasonable assumptions about how many units that you can sell in each of the next four months. Hint: you will need the fourth month's sales in units for the operating budgets.

Required:

Describe your product in terms of type of product, cost of product, sales quantity and selling price per unit. Make projections of your sales in units in each of the upcoming three months. $(1$ mark$)$

Supported with justification, prepare the following budgets for each of the upcoming three months:

Sales budget $(2$ marks$)$

Direct labour budget $(2$ marks$)$

Operating expenses budget $(2$ marks$)$

Budgeted income statement $(3$ marks$)$