Business plan summary (assumptions for next year 2022) 

1. The coming 2022 financial year will have a forecasted growth of 20%.The overall sales should be apportioned across the quarters in the same % as was achieved in the 2021 year. 

2. Cost of goods sold has been increased by 5% due to inflation. 

3. Due to the ongoing US/China trade war and Covid uncertainties, 2022 is expected to be a difficult trading year but Management expects that the budget net profit should target at similar level as achieved in 2021. The strategy to achieve this in the business plan included below key elements: 

a. Basic wages and salaries to be kept at 2021 level. But in addition, incorporate an incentive of $200,000 for staff to exceed sales quota. This is to be equally spilt for each quarter. 

b. To increase the Social Media advertising budget by $70,000 over the previous year to accelerate time to market. $100,000 is planned for the first quarter with the balance apportioned equally over the following three quarters. 

c. The company plan to offer telecommute option for employee and expects a reduction in rental by 30%.

Answer rating: 100% (QA)

1 Turnover for the fiscal year 2022 is expected to increase by twenty percentQuarterly sales distrib... View the full answer