Budgeted unit sales for March, April, and May are 75,000, 80,000, and 90,000units. Management desires to maintain an ending inventory equal to 30% of the nextmonth’s unit sales. How many units should be produced in April?a. 80,000 units c. 77,000 unitsb. 83,000 units d. 85,000 units
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.
Budgeted unit sales for March, April, and May are 75,000, 80,000, and 90,000
units. Management desires to maintain an ending inventory equal to 30% of the next
month’s unit sales. How many units should be produced in April?
a. 80,000 units c. 77,000 units
b. 83,000 units d. 85,000 units
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