Framing House, Inc. produces and sells picture frames. Variable costs are expected to be $14 per frame; fixed costs for the year are expected to total $180,000. The budgeted selling price is $22 per frame. The sales dollars required by Framing House to make an after-tax profit (πA) of $15,000, given an income tax rate, t, of 20 percent, would be (round intermediate calculation(s) to nearest whole number; round units up to nearest whole number):
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.
Framing House, Inc. produces and sells picture frames. Variable costs are expected to be $14 per frame; fixed costs for the year are expected to total $180,000. The budgeted selling price is $22 per frame.
The sales dollars required by Framing House to make an after-tax profit (πA) of $15,000, given an income tax rate, t, of 20 percent, would be (round intermediate calculation(s) to nearest whole number; round units up to nearest whole number):
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