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BUSS1n Setting Budgets 1
BUSS1n Setting Budgets 1
Tommy and Luke are in the process of setting up their own business (T & L Ltd) specialising in
website design and personal computer repairs for small businesses. They have drawn up income
and expenditure budgets (see below).
T & L Budgets
Income from website design
Income from computer repairs
Expenditure: Overheads
Labour costs
Parts and other materials used
Profit/(loss) budget
1
January
(000s)
2.5
4.0
1.0
1.5
1.0
(a)
February
(000s)
3.0
5.5
March
(000s)
(b)
1.7
1.2
4.0
For March Tommy and Luke have set the following targets:(a)
25% increase on February for income from website design
_____________________________________________________________
(b)
1 500 increase on February for income from computer repairs
_____________________________________________________________
(c)
30% increase on February for overheads
_____________________________________________________________
(d)
Labour costs to be the average of January and February
_____________________________________________________________
(e)
500 increase on February for parts
_____________________________________________________________
(2 marks)
(2 marks)
(2 marks)
(2 marks)
(2 marks)
Complete the March budgets using the above targets and calculate the target profit/(loss)
figure for March.
________________________________________________________________________
________________________________________________________________________
(2 marks)
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