budget table. 1. XYZ Merchandising, which is engaged in the resel process of preparing its budgets for the calendar yea able to sell 1,500 bags with a selling price of 2,500 p the basis of both external and internal information. I be 400 bags. The firm also expects that unit sales pe
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.
![Direction: Read and understand the case below and continue to fill in the sales
budget table.
1. XYZ Merchandising, which is engaged in the reselling of branded bags, is in the
process of preparing its budgets for the calendar year 2016. Last year, XYZ was
able to sell 1,500 bags with a selling price of 2,500 per bag. For the current year,
the basis of both external and internal information. First quarter sales expected to
be 400 bags. The firm also expects that unit sales per quarter would increase by
10%. Selling price is also expected to increase by 5% for 2016.
XYZ Merchandising
Sales Budget
For the year ended December 31, 2016
1st quarter
Ex. 400
2ad quarter 3rd quarter 4th quarter
Total
Expected
Sales in Units
Unit Sales
price
Total Sales
2,625
1,050,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81a1ab5f-d564-44eb-b7cd-90d204314897%2F41ffe93a-72f4-4c3a-a3ba-20289936c97d%2F8bayiy_processed.jpeg&w=3840&q=75)
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