Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,100 units. Sales Costs PHOENIX COMPANY Fixed Budget For Year Ended December 31 Direct materials. Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount). Administrative salaries Depreciation Office equipment Income $ 3,020,000 966,400 211,400 60,400 300,000 199,000. 241,600 249,000 451,200 190,000 $ 151,000 Required: 1&2. Prepare flexible budgets at sales volumes of 14,100 and 16,100 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18,100 units. Prepare a simple budgeted Income statement if 18,100 units are sold.
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,100 units. Sales Costs PHOENIX COMPANY Fixed Budget For Year Ended December 31 Direct materials. Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount). Administrative salaries Depreciation Office equipment Income $ 3,020,000 966,400 211,400 60,400 300,000 199,000. 241,600 249,000 451,200 190,000 $ 151,000 Required: 1&2. Prepare flexible budgets at sales volumes of 14,100 and 16,100 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18,100 units. Prepare a simple budgeted Income statement if 18,100 units are sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:Prepare flexible budgets at sales volumes of 14,100 and 16,100 units.
PHOENIX COMPANY
Flexible Budgets
For Year Ended December 31
Flexible Budget
Variable costs
Fixed costs
Req 1 and 2
Req 3
PHOENIX COMPANY
Budgeted Income Statement
For Year Ended December 31
Sales (in units)
Variable Amount Total Fixed
Cost
per Unit
The company's business conditions are improving. One possible result is a sales volume of 18,100 units. Prepare a simple
budgeted income statement if 18,100 units are sold.
18,100
Flexible Budget for:
Units Sales Unit Sales of
of 14,100 16,100
< Req1 and 2
Reg 3 >
Transcribed Image Text:Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,100
units.
Sales
Costs
PHOENIX COMPANY
Fixed Budget
For Year Ended December 311
Direct materials.
Direct labor
Sales staff commissions
Depreciation-Machinery
Supervisory salaries
Shipping
Sales staff salaries (fixed annual amount)
Administrative salaries
Depreciation-Office equipment
Income
$ 3,020,000
966,400
211,400.
60,400
300,000
199,000
241,600
249,000
451,200
190,000
$ 151,000
Required:
1&2. Prepare flexible budgets at sales volumes of 14,100 and 16,100 units.
3. The company's business conditions are improving. One possible result is a sales volume of 18,100 units. Prepare a simple budgeted
Income statement if 18,100 units are sold.
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