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its a really long question i’ll just mention the name.
STATIC CO (DECEMBER 2016)q) (a) Prepare Static Co’s rolling budget for the next four quarters. ? (8 marks)
i understand that in answer key they have used budgeted figures to calculate sales volume growth $13,694/13,425 x 100= 102% so 2% growthbut for gross profit they have used actual figure : GPM = $5,356/14,096 = 38% . why?
i calculated it as 5370/13425 x 100= 40%
whats the logic? same for distribution costNote (2) of the question says that the gross profit % will remain stable each quarter. That means that it will stay at the same % as it actually is currently.
Similarly, notes (3) says that the distribution cost will remain a fixed % of revenue – so it will remain the same % as currently.
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