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Shukri & Co. uses rolling budgeting method and has the following sales budget for 2022: Quarters Q1 Q2 Q3 Q4 Budgeted Sales $125,750 $132,038 $138,640
Shukri & Co. uses rolling budgeting method and has the following sales budget for 2022:
Quarters Q1 Q2 Q3 Q4
Budgeted Sales $125,750 $132,038 $138,640 $145,572
Actual sales for Quarter 1 were $130,450. The adverse variance is fully explained by competition being more intense than expected and growth being lower than anticipated.
The budget committee has proposed a revised assumption of sales growth for the remaining three quarters of 2022 (starting from Quarter 2), and the first quarter of 2023. The revised sales growth should be 3% for Quarters 2 and 3 respectively, thereafter, additional growth of 2% is expected every quarter from Quarter 4 onwards.
Required:
Update Shukri & Cos budget figures for the next four quarters.
Quarters Q1 Q2 Q3 Q4
Budgeted Sales $125,750 $132,038 $138,640 $145,572
Actual sales for Quarter 1 were $130,450. The adverse variance is fully explained by competition being more intense than expected and growth being lower than anticipated.
The budget committee has proposed a revised assumption of sales growth for the remaining three quarters of 2022 (starting from Quarter 2), and the first quarter of 2023. The revised sales growth should be 3% for Quarters 2 and 3 respectively, thereafter, additional growth of 2% is expected every quarter from Quarter 4 onwards.
Required:
Update Shukri & Cos budget figures for the next four quarters.
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