You are the Controller of Mynor Corporation and your team is responsible for preparing the Master Budget for next year. Your initial budget was prepared for the unit sales with an $8-unit sale price. Mynor recently hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7 per unit.

The CFO has asked you to prepare a presentation regarding the two budget proposals that discusses the differences between your initial budget and the proposed budget with the change in the budgeted unit sales based on the reduced selling price.

1. Discuss the change in Total Sales, Cash Collections, Required Production, Raw Materials to be Purchased, and Total Cash Disbursements.
2. Discuss the issue regarding the current production constraint that the production manager disclosed.
3. Make recommendations to CFO regarding the two different budgets and the current production constraint.

key points:

States objectives

. Information is presented in a logical sequence.

..Material included is relevant to the overall message/purpose..

, There is an obvious conclusion summarizing the presentation and providing recommendations.

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