5) Prepare a flexible budget for the SGA expenses at the sales levels provided: Sales commissions 9% of sales Ad expense 12% of sales Miscellaneous expense $5000 per month plus 3% of sales Office expense $20,000 per month Customer support expense $15,000 per month plus 5% of sales R&D expense $30,000 per month $300,000 $500,000 $700,000
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.
5) Prepare a flexible budget for the SGA expenses at the sales levels provided:
Sales commissions 9% of sales
Ad expense 12% of sales
Miscellaneous expense $5000 per month plus 3% of sales
Office expense $20,000 per month
Customer support expense $15,000 per month plus 5% of sales
R&D expense $30,000 per month
$300,000 $500,000 $700,000
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