5. Given the following cost expenditures (see Table P6.3) for a small bridge job to include direct and indirect charges (but not bank interest): A. Calculate the peak financial requirement. B. Sketch a diagram of the overdraft profile. Assumptions:  The markup for this project is 8%.  Finance charge is 1% per month.  Retainage is 6% throughout project.  Payments are billed at the end of the month, and are received one month later. TABLE P6.3 Monthly Costs for Bridge Job Month                      1                 2                  3 Monthly cost∗      29,000       48,900          16,400 ∗ Direct cost + indirect cost

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.