M/s. MNO produces cookies. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year, which ends December 31. Prior year quarterly unit sales were; 40000 in quarter one, and 45000, 50000, 55000 in the subsequent quarters. Unit sales are expected to increase 25% in quarter one, and 5%, 10%, 5% in the subsequent quarters and each unit is expected to sell for Rs. 6. Required: Prepare Sales Budget
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.
M/s. MNO produces cookies. The company is currently in the process of establishing a
quarterly basis for this coming fiscal year, which ends December 31. Prior year quarterly unit sales were;
40000 in quarter one, and 45000, 50000, 55000 in the subsequent quarters. Unit sales are expected to
increase 25% in quarter one, and 5%, 10%, 5% in the subsequent quarters and each unit is expected to sell
for Rs. 6.
Required:
Prepare Sales Budget
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