The Norwegian company Barbacoa AS imports gas-heated barbeque grills from a manufacturer in China. The grills are distributed to Norwegian customers through three channels: the chain of hardware stores Nerdia, the chain of furniture stores Reidar, and from the company's own e- commerce platform. Barbacoa AS has six employees: The Managing Director, who also owns 30 % of the shares of the company. Two Key Account Managers, who are in changes of sales to Nerdia and Reidar. A Logistics Manager, who is responsible for the supply chain and warehouse. A Technical Manager, who handles the contact with the manufacturer as well as technical support to customers. An accountant who handles bookkeeping, payroll, and payments as well as having the responsibilities for the IT-infrastructure and the E-commerce platform. Barbacoa's budget process is as follows: In November each year, the company makes activity plans for the forthcoming year. The demand for barbeque grills is highly seasonal, with more than 80% of the annual sales coming from the second and third quarter of the year. A Master Budget for the forthcoming calendar year is then made early December, with a budgeted income statement, a cash flow budget, and a budgeted balance sheet. The annual budgets are broken up in four quarterly budgets, to help the company to better follow up the seasonal variations in income and net cash flow. These quarterly budgets are often revised when new relevant information is available. . . The budgets for the third quarter of 2022 are now up for revision, due several things that have happened since the first version was made in December 2021. The original Q3 budgets were based on the following assumptions: 1. The company plans to purchase 5 200 grills from their Chinese manufacturer. 2. The company expects a total sale of 8 600 grills. 3. The average purchase price charged by the manufacturer in Guangzhou is USD 240.00 including freight to Norwegian warehouse. The budgeted exchange rate is 1 USD = 9.20 NOK. This purchase price and exchange rate has also been used for purchases made in previous periods. 4. The sales are expected to be split as follows: Nerdia 50 %, Reidar 30 % and Internet sales 20 %. 5. Nerdia and Reidar pays on average kr 2 900 per grill, the Internet customers that order directly from the company pays kr 3 950. 6. Freight costs from Norwegian warehouse are paid by the customer. 7. The monthly salaries are as follows: 1) Managing Director: kr 100 000 2) Key Account Managers: kr 65 000 each 3) Logistics Manager: kr 60 000 4) Technical Manager: kr 60 000 5) Accountant: kr 55 000 8. In addition, the two Key Account Managers receives a bonus of 2.0 % of the orders to Nerdia and Reidar. 9. Instead of July salaries, the personnel are paid 12.0% of their salaries in 2021 as holiday pay. This amounts to kr 518 000, which is accrued for in the balance sheet. 10. The company makes an accrual for 12.0 % holiday pay each month in 2022. Basis for this calculation is the fixed salary and the bonus. 11. The company's National Insurance Contribution ("arbeidsgiveravgift") equals 14.1% of the salaries and holiday pay. Basis for this calculation is the fixed salaries, the bonus, and the holiday pay. 12. Social security costs for the 2021 holiday pay are accrued for in the balance sheet per 31.12.2021 and carried forward to the opening balance of Q3, 2022. 13. Budgeted depreciation is kr 12 000 per month 14. Budgeted rent, office and warehouse costs are kr 32 000 per month 15. Company cars and other travel costs are budgeted to kr 14 000 per month 16. Other budgeted payable operating costs amount to kr 10 000 per month. 17. The financial income and costs are insignificant. 18. Budgeted Payable taxes are 22.0% of the budgeted profit 19. For the sake of simplification, Barbacoa's budgets disregard the effect of VAT. Hence, all the above figures are ex VAT. Question 1 (25%) In the attached Excel-file you will find the original budgeted income statement for Q3, 2022, made back in December 2021, which concludes with a profit after taxes of kr 4 835 510. Due to changes in the company' plans and activities as well as macroeconomic changes, it is now time to revise the budget and calculate the impact of eight different changes: 1. The company will launch a summer campaign together with the Nerdia-Group. The average price per unit will be reduced to kr 2 600 per unit and it is expected this will increase the sales volume by 1 700 units. 2. The budgeted Internet sales is expected to increase to 2020 units. The total number of sold units will then increase from 8 600 units in the original budget to 10 600 units in the revised budget. 3. The bonus to the two Key Account Managers will now be 2.5%. 4. The average USD rate is expected to be 8.90, both for purchases in Q3 and in previous periods. 5. Due to the increased shipping rates, the price for the barbecue grills will increase to USD 260.00 per unit. 6. A new technical supervisor will start to work for the company on June 15, 2022. Her fixed salary will be kr 48 000 per month. She will work two full months in Q3. 7. A new company car will be purchased for kr 480 000 and will be delivered and paid for early June. The car will be depreciated linearly over 10 years from June 2022, with an expected scrap value after 10 years of kr 40 000. 8. The company car costs will increase by kr 7 000 per month. The Norwegian company Barbacoa AS imports gas-heated barbeque grills from a manufacturer in China. The grills are distributed to Norwegian customers through three channels: the chain of hardware stores Nerdia, the chain of furniture stores Reidar, and from the company's own e- commerce platform. Barbacoa AS has six employees: The Managing Director, who also owns 30 % of the shares of the company. Two Key Account Managers, who are in changes of sales to Nerdia and Reidar. A Logistics Manager, who is responsible for the supply chain and warehouse. A Technical Manager, who handles the contact with the manufacturer as well as technical support to customers. An accountant who handles bookkeeping, payroll, and payments as well as having the responsibilities for the IT-infrastructure and the E-commerce platform. Barbacoa's budget process is as follows: In November each year, the company makes activity plans for the forthcoming year. The demand for barbeque grills is highly seasonal, with more than 80% of the annual sales coming from the second and third quarter of the year. A Master Budget for the forthcoming calendar year is then made early December, with a budgeted income statement, a cash flow budget, and a budgeted balance sheet. The annual budgets are broken up in four quarterly budgets, to help the company to better follow up the seasonal variations in income and net cash flow. These quarterly budgets are often revised when new relevant information is available. . . The budgets for the third quarter of 2022 are now up for revision, due several things that have happened since the first version was made in December 2021. The original Q3 budgets were based on the following assumptions: 1. The company plans to purchase 5 200 grills from their Chinese manufacturer. 2. The company expects a total sale of 8 600 grills. 3. The average purchase price charged by the manufacturer in Guangzhou is USD 240.00 including freight to Norwegian warehouse. The budgeted exchange rate is 1 USD = 9.20 NOK. This purchase price and exchange rate has also been used for purchases made in previous periods. 4. The sales are expected to be split as follows: Nerdia 50 %, Reidar 30 % and Internet sales 20 %. 5. Nerdia and Reidar pays on average kr 2 900 per grill, the Internet customers that order directly from the company pays kr 3 950. 6. Freight costs from Norwegian warehouse are paid by the customer. 7. The monthly salaries are as follows: 1) Managing Director: kr 100 000 2) Key Account Managers: kr 65 000 each 3) Logistics Manager: kr 60 000 4) Technical Manager: kr 60 000 5) Accountant: kr 55 000 8. In addition, the two Key Account Managers receives a bonus of 2.0 % of the orders to Nerdia and Reidar. 9. Instead of July salaries, the personnel are paid 12.0% of their salaries in 2021 as holiday pay. This amounts to kr 518 000, which is accrued for in the balance sheet. 10. The company makes an accrual for 12.0 % holiday pay each month in 2022. Basis for this calculation is the fixed salary and the bonus. 11. The company's National Insurance Contribution ("arbeidsgiveravgift") equals 14.1% of the salaries and holiday pay. Basis for this calculation is the fixed salaries, the bonus, and the holiday pay. 12. Social security costs for the 2021 holiday pay are accrued for in the balance sheet per 31.12.2021 and carried forward to the opening balance of Q3, 2022. 13. Budgeted depreciation is kr 12 000 per month 14. Budgeted rent, office and warehouse costs are kr 32 000 per month 15. Company cars and other travel costs are budgeted to kr 14 000 per month 16. Other budgeted payable operating costs amount to kr 10 000 per month. 17. The financial income and costs are insignificant. 18. Budgeted Payable taxes are 22.0% of the budgeted profit 19. For the sake of simplification, Barbacoa's budgets disregard the effect of VAT. Hence, all the above figures are ex VAT. Question 1 (25%) In the attached Excel-file you will find the original budgeted income statement for Q3, 2022, made back in December 2021, which concludes with a profit after taxes of kr 4 835 510. Due to changes in the company' plans and activities as well as macroeconomic changes, it is now time to revise the budget and calculate the impact of eight different changes: 1. The company will launch a summer campaign together with the Nerdia-Group. The average price per unit will be reduced to kr 2 600 per unit and it is expected this will increase the sales volume by 1 700 units. 2. The budgeted Internet sales is expected to increase to 2020 units. The total number of sold units will then increase from 8 600 units in the original budget to 10 600 units in the revised budget. 3. The bonus to the two Key Account Managers will now be 2.5%. 4. The average USD rate is expected to be 8.90, both for purchases in Q3 and in previous periods. 5. Due to the increased shipping rates, the price for the barbecue grills will increase to USD 260.00 per unit. 6. A new technical supervisor will start to work for the company on June 15, 2022. Her fixed salary will be kr 48 000 per month. She will work two full months in Q3. 7. A new company car will be purchased for kr 480 000 and will be delivered and paid for early June. The car will be depreciated linearly over 10 years from June 2022, with an expected scrap value after 10 years of kr 40 000. 8. The company car costs will increase by kr 7 000 per month