| |
management |
 |
 |
| Accounting: Investment Decision-Making (Long-Term) |
|
 |
|
|
|
| |
| Year |
1
|
2
|
3
|
4
|
| Units |
5,000
|
6,000
|
8,000
|
4,000
|
|
A budgeted profit statement can now be drawn up:
|
| Sales |
£40,000
|
£48,000
|
£64,000
|
£32,000
|
| less: |
|
|
|
|
| Variable Costs |
£30,000
|
£36,000
|
£48,000
|
£24,000
|
| Contribution |
£10,000
|
£12,000
|
£16,000
|
£8,000
|
| Less Fixed Overheads: |
|
|
|
|
| Rent/Rates |
£7,000
|
£7,000
|
£7,000
|
£7,000
|
| Depriciation |
£2,000
|
£2,000
|
£2,000
|
£2,000
|
| Profit (Loss) |
£1,000
|
£3,000
|
£7,000
|
(£1,000)
|
|
|
|
|
|
|
|
 |
|
|
|
|
