flexible budgeting, net income for the 40% levels of sales is:
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.
The flexible budgeting for the Naurution company assumes that the first year of operation will serve either 20%, 40% and 60% of the entire 10,851 population of the Republic of Nauru and that the selling price per one meal is $22. Amelia and Kevin are expected to sell 5 meals per week during the 52 weeks per year. Additional details of the flexible budgeting show that the direct labor costs are $2 per unit, direct materials costs $4 per unit, variable
- a) 5,287,309
- b) 9,567,354
- c) 4,934,345
- d) 7,435,345
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