Another budgeting question

samilou67

Hi I seem to have be having a complete blank and I have my exam tomorrow.

The years energy is forecast to be 364000 assuming a 4% increase in consumption and a 6% increase in tariffs.

Instead of energy consumption increasing it is now forecast to decrease by 8%

Calculate the revised energy budget

Answer is £322000

CeeJaySix

You can ignore the tariff increase as it doesn't feature in the adjustment.

364,000 / 104 * 100 = 350,000 gets you back to 100% of the current year (although this still assumes a 6% tariff increase)

350,000 / 100 * 92 = 322,000 as you will only use 100 - 8 = 92% of what you used this year in the next period.

Shorthand - 364,000 / 104 * 92 = 322,000.