​​​ MT is a manufacturer of children's Mobile Phones. In the Budget-setting process, Budget X was prepared by lower and middle management. Budget Y was prepared by senior management.X YUnit Sales 20000 30000Dollar Sales $600,000 $900,000Less: Variable expenses:Direct materials 260,000 360,000Direct Labour 40,000 60,000Variable Overhead 60,000 75,000Variable Selling and administrative expenses 60,000 60,000Total Variable expenses $420,000 $555,000Contribution margin $180,000 $345,000Less: Fixed expenses:Manufacturing Overhead $60,000 $50,000Selling and administrative 100,000 80,000Taxes and Interest 10,000 10,000Total fixed Expenses $170,000 $140,000Net Profit (Loss) $10,000 $205,000Requireda) Calculate the cost per unit for the Variable costs (2 marks)b) Why do you think budget X has high costs and low sales forecasts?