Dixie Co. Budgeting Income Statement Sales Cost of Goods Sold Gross Profit Selling & Admin Operating Income $ 600,000 $360,000 $ 240,000 $ 200,000 40,000 $ Dixie Co. is budgeting for next year. Their initial budget is shown above and is based on 10,000 units. Product costs are 55% variable. Selling and Admin costs are 30% variable. If they wish to budget for 16,000 units, what would the new budgeted profit be? Enter as a whole number, no commas and no dollar signs. Answer:
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.
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