You are the new Budgeting Officer at Best Fit Ltd. You have been asked by the General Manager (Graham Bell) to analyse the sales figures for Quarter 2, and to prepare the sales forecast for Quarter 3. On reviewing the data, you have found the following: i. Estimates (budgeted) sales for Quarter 2 (April to June) was $57,769 per month. Actual figures for the months were significantly lower: April $36,987, May $37,207, and June $40,119 ii. After further investigation you found that the estimated budget for Quarter 2 did not take into account the following: Sales were being adversely affected by an ongoing legal issue with a rival firm. No provision was made in the budget to factor for this and hence the actual figures are much lower than expected Due to the legal issues, suppliers were hesitant to supply goods leading to constant stock outages. You believe that the main cause of the actual budgets not being close to forecasts is that Organisational Policies and Procedures are not being followed when developing budgets (in relation to adverse events, approval of budgets and managing risks). iii. You have estimated that the sales in the next quarter (Quarter 3) are likely to fall by an additional 5% due to the legal issues and their effect on sales and stock levels. Required: a. Write an email to the General manager (Graham Bell) as follows: Express your concerns about poor budgeting practices within the organisation and which policies you feel are not being complied with (make sure you are familiar with the policies on Blackboard) Ask the General manger to clarify whether other organisational budgets need adjusting in view of your concerns. b. Based on the actual sales for Quarter 2 (above), develop a budget in Excel for Quarter 3 based on the assumption that the ongoing issues will cause sales to fall a further 5%. c. The email and the revised budget report (for Quarter 3) should be distributed to the owners (Susan Wong and Mary Wright) and the General Manager (your lecturer).