Accounting

(a) integral approach Quarters

1 2 3 4
Quantity sold 80000 150000 550000 120000
Price per unit (£) 4 4 4 4
Sales 320000 600000 2200000 480000
Variable manufacting cost
(£0,40 per unit) 32000 60000 220000 48000
Fixed manufacturing costs
(=£720,000/Annual Total x
Quantity unit) 64000 120000 440000 96000
Variable non-manufacting cost
(0,35 per unit) 28000 52500 192500 42000

Fixed non-manufacturing costs

(=£1,080,000/Annual Total x
Quantity unit) 96000 180000 660000 144000
Net Income 100000 187500 687500 150000

(b) discrete approach

1 2 3 4
Quantity sold 80000 150000 550000 120000
Price per unit (£) 4 4 4 4
Sales 320000 600000 2200000 480000
Variable manufacting cost
(£0,40 per unit) 32000 60000 220000 48000
Fixed manufacturing costs
(=£720,000/Annual Total x
Quantity unit) 64000 120000 440000 96000
Variable non-manufacting cost
(0,35 per unit) 28000 52500 192500 42000

Fixed non-manufacturing costs

(=£1,080,000/4 quarters) 270000 270000 270000 270000
Net Income -74000 97500 1077500 24000

Analysis (Profit Margin)

Integral approach 1 2 3 4
net income 100000 187500 687500 150000
sales 320000 600000 2200000 480000
profit margin (%) 31.25 31.25 31.25 31.25

Discrete approach 1 2 3 4
net income -74000 97500 1077500 24000
sales 320000 600000 2200000 480000
profit margin (%) -23.13 16.25 48.98 5.00