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.
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