XYZ Ltd is preparing budget for the first four (4) months of the year 2020. The company manufactures and sell one product. The selling price is N$ 150.00 per unit but this will increase to N$ 160.00 as from the 1st of March 2020. The budgeted sales volumes are: Months January February March April Sales for May 2020 are expected to be 40,000 units. Each unit of products uses 3 units of component A, 2 units of component B and 1 units of Component C, the current unit price of which are as follows: N$ Component A Component B Component C 9 6 Question continues next page Units 40,000 50,000 30,000 45,000 25 Component A and B are expected to increase in price by 10% from the 1st of February 2020. Component C will rise by 5 % form the same date. Labour costs for the product are N$ 30-00 per unit; this will increase by 5 % form the 1st of April 2020. Variable production overhead will be N$ 10-00 per unit. Fixed production overhead is budgeted at N$ 264-00 for the year and incurred evenly over each period. Inventory of finished units is budgeted at 20 % of the next month period's sales. No inventories of components are held. Required: Prepare the following budget for XYZ Ltd: a. Sales budget (in units and N$) for three (3) months (January to March 2020). b. Production budget (in units) for four months (January to April 2020). 3 c. Component usage budget (in units) for four (4) months (January to April 2020). d. Component cost budget (in N$) for four (4) months (January to April 2020). (45 marka)