Havana Hats makes the world's best hats. Information for the last eight months follows: Number of Hats Produced 2,500 Month January February March April May June 4,500 5,800 3,260. 4,250 Intercept X Variable 1 4 2,850 6,000 2,300 Total Cost $4,400 7,750 8,800 5,650 7,200 4,900 9,010 4,200 July August Suppose that Havana expects to sell 4,300 hats during the month of September and that each hat sells for $2.75. Havana performed a least-squares regression and obtained the following results: Coefficients 1,214.36 1.34 Required: Prepare Havana's contribution margin income statement for the month of September. Note: Round your answers to 2 decimal places.
Havana Hats makes the world's best hats. Information for the last eight months follows: Number of Hats Produced 2,500 Month January February March April May June 4,500 5,800 3,260. 4,250 Intercept X Variable 1 4 2,850 6,000 2,300 Total Cost $4,400 7,750 8,800 5,650 7,200 4,900 9,010 4,200 July August Suppose that Havana expects to sell 4,300 hats during the month of September and that each hat sells for $2.75. Havana performed a least-squares regression and obtained the following results: Coefficients 1,214.36 1.34 Required: Prepare Havana's contribution margin income statement for the month of September. Note: Round your answers to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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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Transcribed Image Text:Havana Hats makes the world's best hats. Information for the last eight months follows:
Month
January
February
Number of Hats
Produced
2,500
4,500
5,800
3,260
4,250
Intercept
X Variable 1
March
April
May
June
July
August
Suppose that Havana expects to sell 4,300 hats during the month of September and that each hat sells for $2.75.
Havana performed a least-squares regression and obtained the following results:
2,850
6,000
2,300
Total Cost
$ 4,400
Coefficients
1,214.36
1.34
7,750
8,800
5,650
7,200
4,900
9,010
4,200
Required:
Prepare Havana's contribution margin income statement for the month of September.
Note: Round your answers to 2 decimal places.
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