Ace Machinery showed the following operating budget for the next year Complete parts (a) through (d) below Each scenario is independent Sales $2.200,000 Fixed cost $1,400,000 700,000 Total variable cost Total cost 2,100,000 Net income $100 000 (a) Calculate the contribution margin and contribution rate The contribution margin is $ (Round to the nearest dollar as needed) Queition Viewer The contribution rate is (Round to four decimal places as needed) (b) How much does Ace Machinery need to sell to break even? Ace Machinery needs to sel s
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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