A Tesla segment makes speakers and it provided the following information to help prepare the master budget for its first four months of operations. The budgeted selling price per unit is $100. Budgeted unit sales for June, July, August, and September are 9,000, 10,000, 12,000, and 15,000 units, respectively. All sales are on credit. 30% percent of credit sales are collected in the month of the sale and 70% in the following month. What are the expected cash collections for August? $1,200,000 $1,000,600 $1,100,400 $300,600
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 Tesla segment makes speakers and it provided the following information to help prepare the
master budget for its first four months of operations. The budgeted selling price per unit is $100. Budgeted unit sales for June, July, August, and September are 9,000, 10,000, 12,000, and 15,000 units, respectively. All sales are on credit. 30% percent of credit sales are collected in the month of the sale and 70% in the following month. What are the expected cash collections for August? - $1,200,000
- $1,000,600
- $1,100,400
- $300,600
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
