Highlights

c) Based on your results for part (b) produce a profit-volume chart. Show both cases on the same set of axes.
d) Based on your results to parts (a), (b) and (c), write a brief recommendation to management advising on the recommended course of action.

Required:
a) Prepare a sales budget by month for the period June to September.
b) Prepare a schedule of cash collections by month for the period July to September.
c) Prepare a production budget by month for the period July to September.
d) Prepare a direct materials budget for July and August.
e) Prepare a direct labour budget for July and August.
f) Prepare the cash budget for July.
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