The sales of the cashmere jumpers are seasonal. Projected sales for July - Dec (the first...
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The sales of the cashmere jumpers are seasonal. Projected sales for July - Dec (the first six months of the year) are 18,000 units. Projected sales for Jan - Jun (the second six months) are 22,000 units. James Ltd's organisational procedures require each 6 month period to be shown separately in the projected income statement. b. Prepare a projected income statement, breaking down the annual budget into these two seasonal periods. Projected Income Statement July - December January-June Sales revenue Less: Variable costs Contribution Margin Less Fixed costs (for six month period) Profit (Loss) before tax 18,000 Units (First Six Months) 22,000 Units (Second Six Months) The sales of the cashmere jumpers are seasonal. Projected sales for July - Dec (the first six months of the year) are 18,000 units. Projected sales for Jan - Jun (the second six months) are 22,000 units. James Ltd's organisational procedures require each 6 month period to be shown separately in the projected income statement. b. Prepare a projected income statement, breaking down the annual budget into these two seasonal periods. Projected Income Statement July - December January-June Sales revenue Less: Variable costs Contribution Margin Less Fixed costs (for six month period) Profit (Loss) before tax 18,000 Units (First Six Months) 22,000 Units (Second Six Months)
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Answer To prepare the projected income statement for James Ltd we will calculate the sales revenue v... View the full answer
Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
Posted Date:
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