There are rumors that the price of direct materials and direct labor for Alpha to be increased by 15% and 5%, respectively effective January 1, 20X2.Management of Shiraz wants to know the impact of this increase on its financial position. Recalculate the budgets by incorporating the expected increases in the price of direct materials and direct labor.Compute and discuss the percentages of change in the profit and cash balance of the company due to the increase in the price.