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The management of ABC Manufacturing is preparing the budget for the upcoming year. Given the following information: Sales forecast: 10,000 units at $50 each Variable

The management of ABC Manufacturing is preparing the budget for the upcoming year. Given the following information:

  • Sales forecast: 10,000 units at $50 each
  • Variable costs per unit: $20
  • Fixed costs: $100,000
  • Desired ending inventory: 500 units

Prepare the following budgets: a. Sales budget b. Production budget c. Direct materials purchases budget d. Cash budget

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