Griffin Metals Co. has provided the following data.

Anticipated volumes (assume production equals sales each quarter):

The selling price is expected to be £300 per tonne for the first six months and £310 per tonne thereafter. Variable costs per tonne are predicted as £120 in the first quarter, £125 in the second and third quarters, and £ 130 in the fourth quarter.

Fixed costs (in £'000 per quarter) are estimated as follows:

Griffin has asked you to produce a profit budget and a cash forecast for the year (in four quarters) using the above data.

Transcribed Image Text:

Quarter 1 100,000 tonnes Quarter 2 Quarter 3 110,000 tonnes 105,000 tonnes Quarter 4 120,000 tonnes