Parker & Associates, LLC has budgeted the following amounts for its next fiscal year: Total fixed expenses $974,000 Selling price per unit $53 Variable expenses per unit $28 If fixed expenses increase by 10%, the selling price per unit would need to increase by what percentage in order to maintain the original break-even sales in units (round to the nearest tenth of a percent)? Round percentage to one decimal place (ex: 0.03456 = 3.5%). Answer = ______%
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.
Parker & Associates, LLC has budgeted the following amounts for its next fiscal year:
| Total fixed expenses | $974,000 |
| Selling price per unit | $53 |
| Variable expenses per unit | $28 |
If fixed expenses increase by 10%, the selling price per unit would need to increase by what percentage in order to maintain the original break-even sales in units (round to the nearest tenth of a percent)?
Round percentage to one decimal place (ex: 0.03456 = 3.5%).
Answer = ______%
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