XYZ Services prepares a budget for the upcoming quarter with the following projections:

• Expected unit sales: 5,000 units
• Selling price per unit: $200
• Variable cost per unit: $120
• Fixed costs: $300,000

Requirements:

1. Prepare XYZ Services' sales budget for the upcoming quarter.
2. Calculate the budgeted revenue, variable costs, and contribution margin.
3. Discuss the importance of budgeting in financial planning and control at XYZ Services.
4. Analyze the variance between budgeted and actual sales performance.
5. Evaluate XYZ Services' budgeting process and recommend improvements.