BUDGETING TREND HELP!!

cbuttery1991
cbuttery1991 Registered Posts: 47
in Management Accounting: Budgeting
So I have the attached question. I did it as 17400 + (1450 x1) for quarter one and was expecting a total of £18850. I’ve followed it exactly from what’s in the book but the answers here add on the 18850 back on to the 17400 to give an answer of 36250 for the first one. Why are we adding it back on to the 17400 sales?? Again for quarter 2 I did 17400 + (1450 x2) to give 20300 but once again it’s not he answer it’s 37700?!?

Help?!?

Comments

  • thefuture
    thefuture Registered Posts: 16 New contributor 🐸
    edited February 2018
    .
  • keekeedee
    keekeedee Registered Posts: 3
    Hi Cbuttery1991,
    As it states on the question the forecast sales and trend is for 'year 4'. Therefore:

    Year 1
    Quarter 1 = 1
    Quarter 2 = 2
    Quarter 3 = 3
    Quarter 4 = 4

    Year 2
    Quarter 1 = 5
    and so on

    Year 4
    Quarter 1 = 13
    Quarter 2 = 14
    Quarter 3 = 15
    Quarter 4 = 16

    Hope this helps,
    Kieran
  • cbuttery1991
    cbuttery1991 Registered Posts: 47
    Is it just a coincidence then that if you do 17400 x1 plus 1450 and add it back on to 17400 it equals the same?

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