J Two Essay Example | Topics and Well Written Essays - 500 words

J Two - Essay Example I think that factors such as fixed and variable cost also attributed to the decline in the revenue. 1. Use the Percentage Sales Method and a 25% increase in sales to forecast Micro Chips Consolidated Statement of Operations for the period of September 26, 2008 through September 25, 2009. Assume a 15% tax rate and restructuring costs of 5% of the new sales figure. Sales method percentage will be given by the formula 125/100 * amount for every particular in the Consolidated Statements of Operations (Duchac, et, al 2007). For instance in sales 125/100 * 8,334= $10,417.5. Net income for the year 2008 was given to be $1,570.9 and when this figure is compared to the financial year 2009 which is 1,969.9, it shows a 25% increase in sales to forecast and yet we had a 5% restructuring cost on the new sales. Assumptions made here include all costs remained as a fixed percentage of sales. This assumption is unreasonable since in the normal running of a business, the organization can incur more or less cost than stipulated cost as a fixed percentage of sales (Duchac et al,