Help Osborne books - budgeting

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Can someone help on this question from Osborne books assessment 1, question 1e, with workings please

• Registered Posts: 24 New contributor 🐸
Hi,

It has been a while since had a look at this but see below how I would work it out (do let me know if it is correct)

You have been told this year's sales are : £2,500,000 then the trend is 2.5% increase per annum. So the total would be 2.5% of £2,500,000 = £62,500. So your total sales for next year will be £2,500,000 + £62,500 = £2,562,500

This now needs to be broken down into 4 quarters so you would do £2,562,500 / 4 = £640,625 Each quarter sales before we take the Seasonal variation into consideration

Now Seasonal Variation Consideration

Quarter 1 = £640,625 - £40,000 = £600,625

Quarter 2 = £640,625 + £20,000 = £660,625

Quarter 3 = £640,625 + £55,000 = £695,625

Quarter 4 = £640,625 - £35,000 = £605,625

You should see that now if you add all these up you should get to £2,562,500

£600,625 + £660,625 + £695,625 + £605,625 = £2,562,500

Do let me know if that is correct