Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Flavor Budgeted Data Selling Price per Gallon Actual Operating Results Gallons Vanilla 348,000 $ 2.15 Variable Costs per Gallon $ 1.45 Selling Price per Variable Costs per Gallons Gallon Gallon 288,000 $ 2.00 $ 1.35 Chocolate 435,000 3.30 2.40 405,000 3.15 2.30 Strawberry Anchovy 290,000 2.70 1.60 87,000 4.30 2.80 420,000 207,000 2.90 1.65 4.80 3.00 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) Flavor Vanilla Chocolate Strawberry Anchovy Total b. Sales Volume Variance Sales Mix Variance Sales Quantity Variance
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.
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