The sales of the cashmere jumpers are seasonal. Projected sales for July - Dec (the first six months of the year) are 18,000 units. Projected sales for Jan - Jun (the second six months) are 22,000 units. James Ltd's organisational procedures require each 6 month period to be shown separately in the projected income statement. b. Prepare a projected income statement, breaking down the annual budget into these two seasonal periods. Projected Income Statement July - December January-June Sales revenue Less: Variable costs Contribution Margin Less Fixed costs (for six month period) Profit (Loss) before tax 18,000 Units (First Six Months) 22,000 Units (Second Six Months)