Presenting your Technology Choices
Budget Estimates
Budget Estimates
Maurice Hill
Budget Estimates
12/2/2019
The mobile industry is the fastest growing industry in the communications sector. The company’s goal is to increase its share market in this goal. This will increase the company’s rating as one of the tech giants in an industry already covered with other great companies. The growth of the industry has also created new and existing opportunities for the company to acquire.
The marketing, management and HR related expenses are included in the operational budget with management expenses being reflected as miscellaneous expenses.
Capital expenditure involved will include;
Plant and machinery at a cost of $ 675,908,000. The plant will be for the manufacture of mobile phones. The company is looking into increasing its share in the mobile industry and it will therefore need its own line of mobile phones.
Buildings at a cost of $ 32,000,000. The building will house the plant and machinery earlier suggested. It is cheaper to purchase than to lease buildings. These two capital expenditures cannot be included in the operational budget because their lifeline is extended over the period that they will serve their purpose. Expenses related to marinating and depreciation is expensed and included in the operating budget.
INTEL CORPORATION Operating Budget
|
|
Budgeted |
Actual |
Variance |
|
REVENUE |
|
|
|
|
Sales |
$ 70,848,000 |
|
|
|
Investment Income |
|
|
|
|
Other income |
|
|
|
|
Total Revenue |
$ 70,848,000 |
|
|
|
EXPENSES |
|
|
|
|
HR expenses |
|
|
|
|
Salary |
$ 97,317 |
|
|
|
Bonus and commission |
$ 12,423 |
|
|
|
Employee incentive |
|
|
|
|
Employee benefits |
$. 22,413 |
|
|
|
Recruitment |
$ 1,200 |
|
|
|
Total salary & benefits |
$ 133,353 |
|
|
|
Marketing expenses |
|
|
|
|
Seminars and training |
$ 6,128,000 |
|
|
|
Marketing materials |
$ 130,000 |
|
|
|
Travel and entertainment |
$ 516,420 |
|
|
|
Advertising |
$ 2,438,230 |
|
|
|
Total marketing expense |
$ 9,212,650 |
|
|
|
Miscellaneous expenses |
|
|
|
|
Office supplies |
$ 32,432 |
|
|
|
Repairs and maintenance |
$ 756,234 |
|
|
|
Telephone |
$ 1,234,987 |
|
|
|
Vehicle expenses |
$ 92,765 |
|
|
|
Software licenses |
$ 54,000 |
|
|
|
Legal fees |
1,578,980 |
|
|
|
Inventory expenses |
$ 67,890 |
|
|
|
Depreciation |
$2,100 |
|
|
|
Total Miscellaneous expenses |
$ 3,819,388 |
|
|
|
Total Budget expenses |
$ 13,165,391 |
|
|