dgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $218,000. Sales (58,000 units) $ 986,000 Costs:
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.
TB MC Qu. 18-96 The budgeted income statement ...
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $218,000.
| Sales (58,000 units) | $ | 986,000 | ||||
| Costs: | ||||||
| Direct materials | $ | 160,800 | ||||
| Direct labor | 240,800 | |||||
| Fixed factory |
104,000 | |||||
| Variable factory overhead | 150,800 | |||||
| Fixed marketing costs | 110,800 | |||||
| Variable marketing costs | 50,800 | 818,000 | ||||
| Pretax income | $ | 168,000 |
Multiple Choice
-
134,970.
-
172,394.
-
50,800.
-
65,576.
-
32,545.
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