Write a report to management to accompany your budgets.
This report should include:
1 comments on the feasibility of the proposed option of selling Treen to South Island customers.
2 calculation of break-even point under the master budget and the South Island option.
3 any assumptions that are apparent from this budgetary process.
4 any non-financial considerations which you regard as relevant to the South Island expansion proposal.
5 a clear recommendation as to whether the company should proceed with the expansion to the South Island market for the year ending 31 December 2013.