Torre Ltd produces and sells a single product. The original budget for the company was to produce and sell 30,000 units in the year ended 31st March 2022. For the year ended 31st March 2022 the company struggled due to uncertainties as the market recovered from the global pandemic and therefore only produced and sold 27,000 units. Year Ended 31st March 2022 Original Budget Actual Results Variance Volume (units) 30,000 27,000 3,000 Adv f f f Sales 720,000 684,000 36,000 Adv Costs: Materials 150,000 136,000 14,000 Fav Labour 180,000 158,000 22,000 Fav Maintenance 140,000 125,000 15,000 Fav Equipment Hire 12,000 12,000 NIL Depreciation 15,000 16,000 1,000 Adv Rates & Insurance 8,000 9,000 1,000 Adv Profit 215,000 228,000 13,000 Fav Additional information: Material and labour are variable costs. . Maintenance is a semi-variable cost; you are informed that when the volume reduces to 25,000 units, this semi-variable cost will reduce to f120,000. Equipment hire is for a power tool which has a capacity of producing 7,000 units for the year, Le. a stepped cost. All other costs are fixed. Required: Explain THREE reasons, other than budgetary control, why companies prepare budgets