Amin co sells Product YY and uses cost plus aprroach to set selling price. Product YY has the following cost per unit: Direct material $11 Direct labout $5 Variable production overheads $4 Fixed production overheads are $29,000 for the year. Budgeted output and sales for the year are 493 units. Fixed admin cost are budgeted at $11,000 p.a and variable marketing cost expected to be at 7% of sales What is the selling price per unit if profit is based on 55% mark up on variable cost. TO 2 DECIMAL POINTS
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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