Porus Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available: Variable cost per unit sold:Sales commissions $6.80 Shipping $8.30Advertising $2.10Other $0.70 Monthly fixed cost:Advertising $14,000 Executive salaries $142,000Depreciation on office equipment $1,000 Other $32,000 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the total budget for selling and administrative expense for October is $493,300, then how many Yutes does the company plan to sell in October?
Porus Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available: Variable cost per unit sold:Sales commissions $6.80 Shipping $8.30Advertising $2.10Other $0.70 Monthly fixed cost:Advertising $14,000 Executive salaries $142,000Depreciation on office equipment $1,000 Other $32,000 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the total budget for selling and administrative expense for October is $493,300, then how many Yutes does the company plan to sell in October?
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.
Question
Porus Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available: Variable cost per unit sold:Sales commissions $6.80 Shipping $8.30Advertising $2.10Other $0.70 Monthly fixed cost:Advertising $14,000 Executive salaries $142,000Depreciation on office equipment $1,000 Other $32,000 All of these expenses (except depreciation ) are paid in cash in the month they are incurred. If the total budget for selling and administrative expense for October is $493,300, then how many Yutes does the company plan to sell in October? *
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