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2i
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AJ Supplies Ltd |
|
|
|
|
|
ACOUSTIC |
BASS |
CLARINET |
TOTAL |
|
|
£m |
£m |
£m |
£m |
|
Sales Revenue |
360 |
240 |
180 |
780 |
|
Variable Costs |
|
|
|
|
|
Materials |
-120 |
-80 |
-80 |
-280 |
|
Labour |
-120 |
-120 |
-120 |
-360 |
|
Contribution |
120 |
40 |
-20 |
140 |
|
|
|
|
|
|
|
Fixed Costs |
|
|
|
-180 |
|
|
|
|
|
|
|
Net Operating Income |
|
|
|
-40 |
Ii
|
|
Acoustic |
|
Clarinet |
Total |
|
|
(£m) |
|
(£m) |
(£m) |
|
Sales Revenue |
360 |
|
180 |
540 |
|
Variable Costs |
|
|
|
|
|
Materials |
-120 |
|
-80 |
-200 |
|
Labour |
-120 |
|
-120 |
-240 |
|
Contributions |
120 |
|
-20 |
100 |
|
|
|
|
|
|
|
Fixed Costs |
|
|
|
-180 |
|
|
|
|
|
|
|
Net Operating Income |
|
|
|
-80 |
Iii
|
|
Acoustic |
Bass |
|
Total |
|
|
(£m) |
(£m) |
|
(£m) |
|
Sales Revenue |
360 |
240 |
|
600 |
|
Variable Costs |
|
|
|
|
|
Materials |
-120 |
-80 |
|
-200 |
|
Labour |
-120 |
-120 |
|
-240 |
|
Contributions |
120 |
40 |
|
160 |
|
|
|
|
|
|
|
Fixed Costs |
|
|
|
-180 |
|
|
|
|
|
|
|
Net Operating Income |
|
|
|
-20 |
v.
|
|
Acoustic |
|
|
Total |
|
|
(£m) |
|
|
(£m) |
|
Sales Revenue |
360 |
|
|
360 |
|
Variable Costs |
|
|
|
|
|
Materials |
-120 |
|
|
-120 |
|
Labour |
-120 |
|
|
-120 |
|
Contributions |
120 |
|
|
120 |
|
|
|
|
|
|
|
Fixed Costs |
|
|
|
-180 |
|
|
|
|
|
|
|
Net Operating Income |
|
|
|
-60 |
3 Revised Sales Budget
|
|
|
|
||
|
Existing customers |
|
Boxes |
£ |
£ |
|
(0.9 * 25000) * £36 |
|
22,500 |
36 |
810,000 |
|
Supermarket |
|
10,000 |
30 |
300,000 |
|
Total sales |
|
32,500 |
|
1,110,000 |
|
|
|
|
|
|
Revised material, Direct Labour and Variable Cost Budgets (PU & Total)
|
|
|
|
||||
|
|
Old demand level £ |
Disc |
PU(£) |
|
New demand level £ |
Total cost |
|
Material cost |
350,000 |
25,000 |
-8% |
12.88 |
32,500 |
418,600 |
|
Direct labour cost |
160,000 |
25,000 |
0 |
6.4 |
32,500 |
208,000 |
|
`Variable cost |
120,000 |
25,000 |
2% |
4.9 |
32,500 |
159,250 |
Revised Budget Statement of Comprehensive Income
|
|
|
|
|
|
|
|
£ |
£ |
|
Sales |
|
|
1,110,000 |
|
|
|
|
|
|
Direct Materials |
|
418,600 |
|
|
Direct Labour |
|
208,000 |
|
|
Variable Overhead |
|
159,120 |
-785,720 |
|
Contribution |
|
|
324,280 |
|
Fixed Overhead |
|
|
-160,000 |
|
Profit |
|
|
164,280 |
b. Trade receivables collection Period
Trade receivables/Revenue * 12 months
80,000/ 900,000 * 12months = 1.06months
Receivables
For existing customers; 810,000 x 1/12 = 67,500
For new supermarket; 300,000 x 2/12 = 50,000
New trade receivables = 117,500
Budgeted net assets as at 31st December 2021
|
|
£ |
£ |
|
|
|
Old |
Change |
Revised |
|
Non-Current Assets at net book value |
375,000 |
0 |
375,000 |
|
|
|
|
|
|
Working capital |
|
|
|
|
Receivables |
80,000 |
375,000 |
117,500 |
|
Inventory |
110,000 |
40,000 |
150.000 |
|
Payables |
-50,000 |
-25,000 |
-75,000 |
|
|
|
|
192,500 |
|
Net assets employed |
|
|
567,500 |
PU and Total Contribution
|
|
£ |
£ |
£ |
£ |
|
|
Old Budget |
CPU |
Revised Budget |
CPU |
|
Sales |
900,000 |
36 |
1,110,000 |
30 |
|
Direct Materials |
-350,000 |
-14 |
418,600 |
12.88 |
|
Direct labour |
-160,000 |
-6.4 |
208,000 |
6.4 |
|
Variable Overhead |
-120,000 |
-4.8 |
159,120 |
4.9 |
|
|
-630,000 |
-25.2 |
|
|
|
Contribution |
270,000 |
|
324,280 |
|