Gibson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super $ 110 Sales price Variable cost per unit Contribution margin per unit (64) $.46 a. Total number of products b. Product Super b. Product Supreme Supreme $123 (91) Gibson expects to incur annual fixed costs of $209,000. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. units units units $ 32 Required a. Determine the total number of products (units of Super and Supreme combined) Gibson must sell to break even. b. How many units each of Super and Supreme must Gibson sell to break even? Note: For all requirements, do not round intermediate calculations.

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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.