Cotton Company produces and sells socks. Variable costs are budgeted at $2 per pair, and fixed costs for the year are expected to total $140,000. The selling price is expected to be $4 per pair. The sales units required for Cotton Company to make an after-tax profit (πA) of $21,000, given an income tax rate of 50%, are:
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.
Cotton Company produces and sells socks. Variable costs are budgeted at $2 per pair, and fixed costs for the year are expected to total $140,000. The selling price is expected to be $4 per pair. The sales units required for Cotton Company to make an after-tax profit (πA) of $21,000, given an income tax rate of 50%, are: Group of answer choices
81,000 units.
90,000 units.
99,161 units.
93,500 units.
91,000 units.
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