Northern Co. manufactures chairs. Some of the company's data was misplaced. Use the following information to replace the lost data. Please show your work to get full credit. Flexible Budget Sales Volume (in units) Sales Revenues Less: Variable Costs Contribution Margin Less: Fixed Costs Operating Income Actual Results 65,000 $1,190,000 550,000 640,000 430,000 210,000 (Required) Fill out the blank cells with appropriate names and numbers. Also indicate if the variance is favorable (F) or Unfavorable (U) Master Budget 60,000 $1,200,000 480,000 720,000 420,000 300,000
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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