process, ABC Company developed the following static budget for June. ABC Company is in the process of preparing the flexible budget and understanding the results. Actual Results Flexible. Budget . Static Budget Sales volume (in units) 18,000 Sales revenue Variable costs $ 900,000 $ $360,000 $ $540,000 $ Contribution margin Fixed costs $275,300 $ Operating profit $ 264,700 $ How much would the flexible budget report for contribution margin? . 23,000 $1,150,000 $463,910 $686,090 $ 269,500 $416,590
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.
Denger
![The actual information pertains to the month of June. As a part of the budgeting
process, ABC Company developed the following static budget for June. ABC
Company is in the process of preparing the flexible budget and understanding the
results.
Actual
Results
Flexible
Budget
Static
Budget
23,000
$1,150,000
$ 463,910
$ 686,090
$ 269,500
$ 416,590
Sales volume (in units)
Sales revenue
Variable costs
18,000
$ 900,000 $
$360,000 $
$540,000 $
$ 275,300 $
$ 264,700 $
Contribution margin
Fixed costs
Operating profit
How much would the flexible budget report for contribution margin?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0b60bf8-6bfb-4fe9-a317-e53b72acb1fd%2F4d2e9050-8148-4846-88e0-b69db286cd46%2F1so0kec_processed.jpeg&w=3840&q=75)
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