Brodrick Company expects to produce 20,700 units for the year ending December 31. A flexible budget for 20,700 units of production reflects sales of $517,500; variable costs of $62,100; and fixed costs of $140,000. If the company instead expects to produce and sell 27,300 units for the year, calculate the expected level of income from operations. ------Flexible Budget---- Variable Amount per Unit Contribution margin $ 0.00 Total Fixed Cost ------Flexible Budget at- 20,700 units $ $ 27,300 units 0 $ 0 $ 0 0
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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