Using Excel, prepare budget schedules according to the directions in 10.2 a. for Abruzzi Oil Company.Respond to questions 10-2 b. and c. in written report format with citations (APA style) included from the textbook and at least two other sources of your choosing.

Please see reference to question:

Case 10.2AbruzziOliveOilCompany(LO1)

TheAbruzziOliveOilCompany is a small producer of premium oliveoil. Cheryl Sounders, the owner ofAbruzzi, is currently developing a budget spreadsheet to explore the impact of various sales goals on production.

In 2020, the company had monthly sales as follows:

Month Sales (gallons)

January 9,200

February 9,000

March 9,400

April 8,600

May 8,000

June 8,500

July 8,200

August 7,500

September 8,900

October 9,300

November 9,200

December 9,600

At a planning meeting in November 2020, Jay Peters, the marketing manager forAbruzzi, told Cheryl that he expected monthly sales to increase by 5 to 15 percent in the coming year. But in late December 2020, Jay rushed into Cheryl's office with some good news. "Cheryl, I just had a meeting with Consolidated Restaurants, and they're considering an order for 1,250 gallons each month for all of 2021."

"Gosh," Cheryl replied, "that's an exciting bit of news, but I'm concerned about whether we have the capacity to accept such a large order. I'll prepare budgets assuming we don't get the Consolidated business but we increase monthly sales by 5, 10, or 15 percent. Then I'll assume the Consolidated order comes through, and on top of that we have monthly sales increases of 5, 10, and 15 percent. This should give us a good idea of whether we'll bump up against capacity." Jay thought that this sounded fine, but he wondered whether Cheryl had the time to do this much work. Cheryl indicated that the analysis was relatively easy since she was preparing the budget on a spreadsheet and each analysis would require only a simple change.

B) Suppose that capacity is 12,000 gallons. Is the company likely to encounter a capacity problem?

C)Abruzzisells itsoilfor $25 per gallon. The variable cost per gallon is $10. What will be the annual impact on profit of obtaining the Consolidated business (assuming that there is no capacity problem)?