Sian makes and sells fencing panels. She is setting her budgets for the coming year. Her budgeted selling price for her fencing panels is £20 and she expects to sell 1,000 panels in June. Her budgeted raw material cost for each fencing panel is £6 and direct labour is £4 per panel. New machinery costing £7,500 is budgeted for purchase in May. The new machinery is expected to last for 5 years and have a resale value of £600 after 5 years. Sian depreciates her property, plant and equipment on the straight line basis. Administration overheads for June are budgeted to be £1,000. What is Sian's budgeted net profit for June?

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The Answer of Sian makes and sells fencing panels. She is setting her budgets for the coming year. Her budgeted selling price for her fencing panels is £20 and she expects to sell 1,000 panels in June. Her budgeted raw material cost for each fencing panel is £6 and direct labour is £4 per panel. New machinery costing £7,500 is budgeted for purchase in May. The new machinery is expected to last for 5 years and have a resale value of £600 after 5 years. Sian depreciates her property, plant and equipment on the straight line basis. Administration overheads for June are budgeted to be £1,000. What is Sian's budgeted net profit for June?

Sian Makes and Sells Fencing Panels