Help Osborne books  budgeting
Zobiah97
Registered Posts: 12
Can someone help on this question from Osborne books assessment 1, question 1e, with workings please
0
Answers

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 correct0