arts of this multi-part (simple, five-line) flexible budget are based upon the same set of data Thermaltake Company prepared a budget for an anticipated production level of 50,000 units and an anticipated sales level of 50,000 units. That existing budget for the 50,000 unit level showed lines of $500,000 for sales, $250,000 for variable costs, $250,000 for contribution margin, $100,000 for fixed costs, and $150,000 for net income. Actual production and sales levels experienced during the period were 60,000 units. In the flexible budget that reflects adjustments appropriate for the new actual level of 60,000 units, the appropriate dollar amount for variable costs should be: $50,000 $300,000 $600,000
arts of this multi-part (simple, five-line) flexible budget are based upon the same set of data Thermaltake Company prepared a budget for an anticipated production level of 50,000 units and an anticipated sales level of 50,000 units. That existing budget for the 50,000 unit level showed lines of $500,000 for sales, $250,000 for variable costs, $250,000 for contribution margin, $100,000 for fixed costs, and $150,000 for net income. Actual production and sales levels experienced during the period were 60,000 units. In the flexible budget that reflects adjustments appropriate for the new actual level of 60,000 units, the appropriate dollar amount for variable costs should be: $50,000 $300,000 $600,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Question
28.
All parts of this multi-part (simple, five-line) flexible budget are based upon the same set of data Thermaltake Company prepared a budget for an anticipated production level of 50,000 units and an anticipated sales level of 50,000 units. That existing budget for the 50,000 unit level showed lines of $500,000 for sales, $250,000 for variable costs, $250,000 for contribution margin, $100,000 for fixed costs, and $150,000 for net income. Actual production and sales levels experienced during the period were 60,000 units. In the flexible budget that reflects adjustments appropriate for the new actual level of 60,000 units, the appropriate dollar amount for variable costs should be:
$50,000
$300,000
$600,000
$250,000
$30,000
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