1. Pine Company expects to sell 800 wreaths in December 2016 but wants to plan for 225 more and 225 less than expected. The wreaths sell for $15.00 each and have variable costs of $10.00 each. Fixed costs are expected to be $1,500 for the month. Prepare a flexible budget for 575, 800, and 1,025 wreaths. Units Pine Company Flexible Budget For the Month Ended December 31, 2016 Budget Amounts per Unit 575 800 1,025
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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