Modesto Co, produces and sells Product AlphaB. To guard against stockouts, the company requires that 20% of the next month's sales be on hand at the end of the month. Based on the Budgeted sales of Product AlphaB over the next four months below, what would be the budgeted production for August? Budgeted Sales in Units Month 30,000 June 40,000 July 60,000 August 50,000 September
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.
Modesto Co, produces and sells Product AlphaB. To guard against stockouts, the company requires that 20% of the next month's sales be on hand at the end of the month. Based on the Budgeted sales of Product AlphaB over the next four months below, what would be the budgeted production for August?
Budgeted Sales in Units Month
30,000 June
40,000 July
60,000 August
50,000 September
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
