Required: Label (a) and (b) in the graph and give the number of units sold for each. (a) (b) Operating profit Operating loss Flexible budget =$178,000 $0 Master budget = $(95,000) Fixed costs = $680,000 Slope = contribution margin per unit $13 Master budget activity Flexible budget activity ô Answer is complete but not entirely correct. 45,000 units 38,615 units Flexible budget line Units sold
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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