company has prepared the following budget for a given month: Product Selling Price (per unit) Variable Cost (per unit) Unit Sales A $10 $4 15k B $15 $9 21k C $19 $8 4k Assuming that total fixed expenses will be $150.9 and the sales mix remains constant, determine the firm’s dollar sales to break-even. Note: The term “k” is used to represent thousands (× $1,000).
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.
Q10.
A company has prepared the following budget for a given month:
|
Product |
Selling Price (per unit) |
Variable Cost (per unit) |
Unit Sales |
|
A |
$10 |
$4 |
15k |
|
B |
$15 |
$9 |
21k |
|
C |
$19 |
$8 |
4k |
Assuming that total fixed expenses will be $150.9 and the sales mix remains constant, determine the firm’s dollar sales to break-even.
Note: The term “k” is used to represent thousands (× $1,000).
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