What is the budgeted income statement for Pluto

2.1. Budgeted sales are 700 000 litres of Pluto @ R900 per litre (p/I); 80 000 litres of Merc @ R50 p/l; and 350 000 litres of Sarn @ R700 p/l. Except for Merc whose budgeted variable distribution costs is R12 p/l, all the other products' budgeted variable distribution costs are R50 p/l per product. 2.2. No opening inventory of any type is budgeted for and where applicable, closing inventory relate to finished goods only. 2.3. Budgeted total purchases of the neutral-chemical are 1 400 000 litres @ R320 p/l. 2.4. Chemical mixing and balancing occur in batches of 5 000 litres per batch at 150 hours per batch. The related budgeted costs are R450 per hour. 2.5. Chemical processing is budgeted for at R120 per hour of chemical mixing and balancing. 2.6. Chemical cooling is budgeted for at R38 060 000 while Property A's temperature control costs (which does not include property rental costs) are budgeted for at R1 200 000. 2.7. Property A and Property B are both rented for the entire financial year at R25 000 per month and R8 000 per month, respectively. 2.8. Mrs Neptune's annual remuneration is R2 500 000. 2.9. The budgeted total fixed administration costs are R2 904 000. CONFIDENTIAL [TURN OVER] Page 5 of 8 MAC3701 January/February 2021 QUESTION 1 (continued) 2.10. Other additional budgeted information: Cost item Pluto Merc Sarn Total R'000 R'000 R'000 R'000 Packing labour costs (manufacturing costs) 20 000 500 9 000 29 500 Other variable manufacturing overheads 3 200 27 3 600 6 827 Further variable processing costs 4 000 0 0 4 000 Total R27 200 R527 R12 600 R40 327 3. ACTUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020: Details Notes Actual Pluto Merc Sarn Total Sales volume (in litres) 695 000 70 000 340 000 1 105 000 Selling price per litre R920 R50 R690 Gross profit percentage 45% 60% 45%