Manage Budgets and financial plan

Task 01
Activity A - Important Notes:
According to company strategic plans, the company aims to achieve a net profit before tax of $1,000,000. The chief risks to this goal are: poor sales due to economic downturn increases in expenses such as wage expenses.
In addition to Australian operations, the company is considering manufacturing overseas to take advantage of reduced costs. The company is also considering diversifying its product range to reduce exposure to poor sales of one product.
Sales Information
Q2 = $1 million.
Q1, Q3, Q4 = Q2- 30%
Commission negotiated with members of the sales team is now set at 2.5% of sales.
Q2 depend on completion of 100% of repairs and maintenance.
So:
Q2 = 1,000,000
Q1= Q3= Q4 = 1,000,000 – (1000,000*30%) = 700,000
FY= 1,000,000 + 2,100,00 = 3,100,000

New Commissions = 2.5%
Q1= 700.000*2.5% = 17.500
Q2= 1.000.000*2.5 =25.000
Q3= 700.000*2.5% = 17.500
Q4= 700.000*2.5% = 17.500
FY = (17.500*3)+25.000= 77.500

New Plain for repairs and maintenance
FY= 50.000
Q1 = Q2 = 25.000
Q3 = Q4 = 0

If we do the analyses with new information of sales, commission and budget for repairs and maintenance, we will have some modifications into the table sheet projection/ plain.
The changes will be on:
Gross Profit
Q1=Q2=Q3=Q4 = Sales – (commissions +direct wages fixed + Cost of Goods Sold)
Gross Profit = FY = (532. 500*3) + 825.000 = 2,422,500 FY
Q1
Q2
Q3
Q4
REVENUE

Commissions 77,500 17,500 25,000 17,500 17,500 Direct wages fixed 200,000 50,000 50,000 50,000 50,000 Sales 3,100,000 700,000 1,000,000 700,000 700,000 Cost of Goods Sold 400,000 100,000 100,000 100,000 100,000
Gross Profit 2,422,500 532,500 825,000 532,500 532,500

Net Profit (become Interest and Tax)
Net Profit = Gross Profit - total of expenses FY
Q1
Q2
Q3
Q4
EXPENSES

General