M2 Unit 2 Case Study

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Task 1 As Sales manager you are asked to produce a quarterly budget forecast for next years sales. Complete the quarterly budget showing the revenue by product, and total income each quarter and for the year. Use Microsoft excels to produce the spreadsheet. Sales forecast is a prediction based on past sales performance and an analysis of expected market conditions. The true value in making a forecast is that it forces us to look at the future objectively. The company that takes note of the past stays aware of the present and precisely analyses that information to see into the future. Conducting a sales forecast will provide your business with an evaluation of past and current sales levels and annual growth, and allow you to compare…show more content…
As a sale manager you can retrieve the first profit by other mean, including decreasing cost in administration (redundancy). Admin cost = 25000 Drop profit = 1285.8787 New admin cost = 23714.1213 That means the administration cost will be reduce at about 5.14 %. Task6 Consider the effects of the following deviations upon the Master Budget: 1. A 2.5% increase in materials costs 2. A 6% increase in Electricity costs. 1. A 2.5% increase in material cost When the material costs increases, the affect will occur on the master budget. The 2.5 % increase on the material cost means we will be paying more; as a result the profit will be less, unless we increase the selling price, reduction of employees (redundancy), to cover the change. Here below are show the calculation of the change: Material cost is 50355.15 2.5% of 50355.15 = 50355.15x 2.5 = 1258.87 100 The new material cost is = 50355.15 + 1258.87 =…show more content…
In this task we will investigate the financial planning of the Engineering academy and show the effect and importance of it in the company. What is a financial planning process? 1. A process in which an individual sets long-term financial goals through investments, tax planning, asset allocation, risk management, retirement planning and estate planning. 2. Financial planning is the process of solving financial problems and achieving financial goals by developing and implementing a personalised "game plan." Anyone who has financial challenges to solve or financial goals to achieve needs financial planning. Financial Planning can help to achieve both greater wealth and financial security. Inadequate planning can be financially disastrous. For example an uninsured loss can wipe out accumulated wealth. There are seven factors that you need to know about in order to have an effective financial planning strategy. 1. Cash Management 2. Funding new projects/product 3. Reduction in

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