Accounting This is the budget for the year ended 30 April 2021 for company XTZ Total production & sales = 2400units Selling price per unit = $1200 Variable manufacturing costs : Direct labour = $192 ; Direct material = $288 ; Overheads = $96 Fixed manufacture overheads = $216,960 Other : Fixed marketing & admin cost = $144,000 Sales commission = 5% 1) Calculate the total marginal income and net profit & loss if all units are sold 2) Use the marginal income ratio to work out the break even value 3) Calc the new total marginal income & net profit &loss if an increase of $50,000 in advertising costs increases sales by 200units
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.
Accounting
This is the budget for the year ended 30 April 2021 for company XTZ
Total production & sales = 2400units
Selling price per unit = $1200
Variable
Fixed manufacture overheads = $216,960
Other : Fixed marketing & admin cost = $144,000
Sales commission = 5%
1) Calculate the total marginal income and net profit & loss if all units are sold
2) Use the marginal income ratio to work out the break even value
3) Calc the new total marginal income & net profit &loss if an increase of $50,000 in advertising costs increases sales by 200units
4) If the company earns a net profit of $298,920 ; How many units were sold
5) If expected sales volume is 2400units, what is the sales price per unit which will allow the company to break even?
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