A chair manufacturer has established the following flexible budget for the month. Units Produced and Sold UNITS 1,000 1,500 2,000 Sales $15,000 $22,500 $30,000 Variable Costs (6,000) (9,000) (12,000) Fixed Costs (4,000) (4,000) (4,000) Profit $ 5,000 $ 9,500 $ 14,000 What is the equation to compute the total cost? I need to use the format TC = UVC(x) + TFC where UVC and TFC are numbers.
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.
A chair manufacturer has established the following flexible budget for the month.
Units Produced and Sold
|
UNITS |
|
|
1,000 |
1,500 |
2,000 |
|
Sales |
|
|
$15,000 |
$22,500 |
$30,000 |
|
Variable Costs |
|
|
(6,000) |
(9,000) |
(12,000) |
|
Fixed Costs |
|
|
(4,000) |
(4,000) |
(4,000) |
|
Profit |
|
|
$ 5,000 |
$ 9,500 |
$ 14,000 |
- What is the equation to compute the total cost? I need to use the format TC = UVC(x) + TFC where UVC and TFC are numbers.
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