Question 1 Budgeting Fixed and flexible budgeting in an organization

Recommendation
Cherry Berry Limited will lose (£13,250) after subtracting the £127,500 paid to Borges from the overall cost of making Seville marmalade. Borges' contract proposal should not be accepted by the company, according to the firm's calculations.
Sales Revenue - £127,500
Overall Costs - £30,000+£12,000+£15,750+£36,000+£12,000+£5,000+£30,000=£140,750
Profit - £127,500-£140,750= (£13,250)
B)
For every jar of Seville marmalade with Champagne that Borges, the low-cost grocery chain, buys from the firm, the corporation receives $127,500 in profit.
Cherry Berry Limited has located a new marmalade supplier in Scotland who is ready to supply Cherry Berry Limited with the product at a set price of £0.68 per jar. There is a £5,000 charge for the labeling and shipping of products from England to the Borges distribution facility in Scotland for Cherry Berry Limited. A total of $12,400 is expected for all of this transportation. In order to close the agreement, the outsourcer has to receive £102,000. Around $119,400 will be needed for the entire project. Cherry Berry Limited stands to make £8,100 if they accept the contract. Most likely, the offer should be accepted if the company's owner is content with £8,100 over three months.

Cost of outsourcing = £102,000

Label costs = £5,000
Transportation = £12,400
Total costs = £119,400

Profit = £127,500 - £119,400 = £8,100

C) A contract from Scotland Supplier is likely to be accepted if the following four requirements are met:

1. 
   Satisfaction of the customer. Customers must be happy with the marmalade's taste, price, and quality if the firm is to utilize Scottish suppliers. It follows that this is an important consideration for Cherry Berry Company. Do a test survey, such as tasting samples, and then make judgments regarding purchasing from new suppliers, like huge food producers do. This is what I would propose. The Dodo Pizza innovation pipeline is a good example of a product testing process that incorporates both internal and external tastings of a new pizza before it is added to the menu.
   

2. 
   Logistics. In addition, delivery is a significant role in the selection. Vendors must get their items delivered on schedule.
   

3. 
   3. The effect on the quality. Organizations conducting surveys frequently find that quantitative components fail to yield reliable findings. An example of a qualitative management accounting element is one that has a direct influence on the product or service's quality. Long-term advantages of product performance should not be sacrificed in the pursuit of immediate financial savings by companies that are fair in their cost-cutting initiatives. Using lower-quality ingredients to save money on additives is one example, and the marmalade maker runs the risk of losing repeat business owing to product quality inconsistency.
   

4. 
   The ability to meet deadlines. The supplier's ability to meet deadlines is a crucial consideration in every supply agreement. It's possible that unneeded freight and warehousing charges might be incurred if a contract manufacturer delays completing an order.