sales budget for 20X2, we need to consider the expected increase in unit sales due to average economic conditions and the planned price increase for each product. Calculate the expected increase in unit sales: All-season tyre: 10,000 units * 1.04 (4% increase) = 10,400 units Sports tyre: 8,000 units * 1.04 (4% increase) = 8,320 units Calculate the new price for each product: All-season tyre: $200 (current price per unit) * 1.01 (1% increase) = $202 per unit Sports tyre: $350 (current price per unit) * 1.02 (2% increase) = $357 per unit Calculate the sales amount for each product: All-season tyre: 10,400 units * $202/unit = $2,100,800 Sports tyre: 8,320 units * $357/unit = $2,970,240 So, the sales budget for 20X2 would be $2,100,800 for All-season tyres and $2,970,240 for Sports tyres. For the purchases budget, we need to calculate the closing inventory for 20X2 which is 50% of the following year's sales requirements. Assuming the sales requirements for 20X3 are the same as 20X2: Calculate the closing inventory: All-season tyre: 10,400 units * 0.5 = 5,200 units Sports tyre: 8,320 units * 0.5 = 4,160 units Calculate the purchase amount for each product: All-season tyre: 5,200 units * $100/unit = $520,000 Sports tyre: 4,160 units * $150/unit = $624,000 So, the purchases budget for 20X2 would be $520,000 for All-season tyres and $624,000 for Sports tyres prepare cost of good sold budget