This exercise comprises three (3) different cases that introduce Gross Profit as an important factor in setting budgets where sales of products is involved.
Reading about Gross Profit can be found at the URL: http://www.leoisaac.com/fin/fin040.htm
For this exercise you may also find useful some information about the need to value of stock (inventory) and the issues involved..
For this exercise, as indeed for all budgeting exercises, you are recommended to prepare spreadsheets that appropriately displays the data given, and logically work towards an answer.
If you get stuck answers are available in the combined compendium of answers to all budgeting problems which can be purchased from this website for a small fee.