Before the start of the current year under review (July 2015 to June 2016), Dekkan’s accountant had prepared the annual operating plan for the business [SCHEDULE 1] in the APPENDIX. WILDWOOD CREATIONS’ business was small and relatively straightforward, which made it possible to develop the company’s operating budget using specific volume and revenue data for each product-service area. The following information was used in preparing the annual plan for July 2015 – June 2016: 1. Based on earlier years’ work orders (2014-2015), the business was expected to carry out the following number of jobs in the July 2015 – June 1016 year:
a. 390 major repairs Jobs; 1,830 minor repairs Jobs; 540 restoration Jobs; also, the company expected to receive order to make and sell 520 standard new outdoor tables. In addition, it expected to take on 50 rush repair jobs.
b. The average major repairs Jobs were to be charged a price of $450 per Job. The average major repair Job was expected to take an average four hours to complete.
c. The minor repair Jobs were to be quoted the price of $320, respectively. The minor repair Job work was expected to take an average of two hours to complete.
d. The sale price of standard new outdoor tables was expected to average $680 per table.
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