K&C Ltd. is working on a budget for the current year. The following information is linked to budget preparation: Budgeted selling price per unit = SAR 450 per unit Total fixed costs = SAR 275,000 Variable costs = SAR 150 per unit Required: You are required to prepare a flexible budget for 1,000, 1,500, 2,000, and 2,500 units.
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.
K&C Ltd. is working on a budget for the current year. The following information is linked to budget preparation:
Budgeted selling price per unit = SAR 450 per unit
Total fixed costs = SAR 275,000
Variable costs = SAR 150 per unit
Required:
You are required to prepare a flexible budget for 1,000, 1,500, 2,000, and 2,500 units.
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