Boron Company will produce 2,500 boxes of batteries next year.  Variable costs is 60% of sales, while fixed costs will total P80,000 on which half is attributable to manufacturing and the rest to financing cost. What is the sales price of the per box of batteries if Boron Company wants to achieve a degree of operating leverage of 1.67 and an earnings before taxes equal to half the amount of interest expense?

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.