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  • BUSS1n Setting Budgets 1

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    Jack Noké
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    Tommy and Luke are starting a business called T & L Ltd that provides website design and computer repair services. They have created income and expenditure budgets for January and February that show earnings from services, expenses, and projected profit or loss. The document provides the budgets and asks the reader to calculate missing values and extend the March budget using specified targets for income, expenses, and profit.

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    Tommy and Luke are starting a business called T & L Ltd that provides website design and computer repair services. They have created income and expenditure budgets for January and February that show earnings from services, expenses, and projected profit or loss. The document provides the budgets and asks the reader to calculate missing values and extend the March budget using specified targets for income, expenses, and profit.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views1 page

    BUSS1n Setting Budgets 1

    Uploaded by

    Jack Noké
    Tommy and Luke are starting a business called T & L Ltd that provides website design and computer repair services. They have created income and expenditure budgets for January and February that show earnings from services, expenses, and projected profit or loss. The document provides the budgets and asks the reader to calculate missing values and extend the March budget using specified targets for income, expenses, and profit.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    BUSS1 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

    Calculate the missing figures in the budgets:(a)


    ________________________________________________________________________
    _______________________________________________________________ (2 marks)
    (b)
    ________________________________________________________________________
    _______________________________________________________________ (2 marks)

    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)

    Extension: What are the advantages to a new entrepreneur


    of setting income and expenditure budgets?

    www.time2resources.com

    Total

    / 16

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