43. Assuming the sales mix in Year 5 will be the same as in Year 4, what is the breakeven sales volume for Year 5 (rounded to the nearest 10 units)? Yabco Inc. produces three design types of a product, A, B and C. The budgeted gross margin per unit for Year 5 is as follows: A C B P400 P250 Price P150 Direct materials 100 80 40 Direct labor 50 50 50 Variable overhead 60 40 10 Fixed overhead 20 20 20 230 190 120 Gross Margin per Unit P170 P 60 P 30 The fixed overhead allocation rate is based on the Year 4 sales of 5,000 units of A, 10,000 units of B and 20,000 units of C. The budgeted total administration costs for Year 5 amount to P500,000, all of which are fixed costs. a) 8,540 units Ob) 11,250 units Oc) 8,840 units Od) 15,270 units
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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