Cosgrove Company Traditional Format Income Statement For the Three Months Ended June 30 April May June Sales in Units 3,000 3,750 4,500 Sales Revenue 420,000 525,000 630,000 Cost of Goods Sold 168,000 210,000 252,000 Gross Margin 252,000 315,000 378,000 Selling and Administrative Expenses: Shipping Expense 44,000 50,000 56,000 Advertising Expense 70,000 70,000 70,000 Salaries and Commissions 107,000 125,000 143,000 Insurance Expense 9,000 9,000 9,000 Depreciation Expense 42,000 42,000 42,000 Total Selling and Administrative Expenses 272,000 296,000 320,000 Net Operating Income (Loss) $(20,000) $19,000 $58,000
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.
Use the attached and calculate the below:
- Identify the fixed and variable costs associated with Cosgrove.
- Calculate the average costs per month.
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