Manufactures tires for the Formula I motor racing circuit. For August 2020, it budgeted to manufacture and sell 3,600 tires at a variable co $74 per tire and total fixed costs of $56,000. The budgeted selling price was $108 per tire. Actual results in August 2020 were 3,400 tires manufactured and se selling price of $111 per tire. The actual total variable costs were $275,400, and the actual total fixed costs were $51,500. Read the equirements Units sold Revenues ariable costs contribution margin xed costs perating income $ Actual Results 3,400 377,400 275,400 102,000 51,500 $ 50,500 Flexible-Budget Variances 0 U U U F Flexible Budget COLOR
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.
![Garbera Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020, it budgeted to manufacture and sell 3,600 tires at a variable cost of
$74 per tire and total fixed costs of $56,000. The budgeted selling price was $108 per tire. Actual results in August 2020 were 3,400 tires manufactured and sold at
selling price of $111 per tire. The actual total variable costs were $275,400, and the actual total fixed costs were $51,500.
Read the tequirements
Units sold
Revenues
Variable costs
Contribution margin
Fixed costs
Operating income
Actual
Results
3,400
$ 377,400
275,400
102,000
51,500
$ 50,500
Flexible-Budget
Variances
U
U
U
F
Flexible
Budget](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5d44dc2-bb16-4511-8534-75f68bea7418%2Fa932fe2e-e83a-4b7e-ac52-f856d735d814%2Flibk7h_processed.jpeg&w=3840&q=75)
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