Sales revenue Flexible Budget Performance Report - Sales and Operating Expenses For the Year Ended December 31 ($35 per case) Less variable expenses: Packaging expense ($4 per case sold) Shipping expense ($5 per case sold) Sales commissions (3% of sales price) Contribution margin Actual 7,500 cases $ 270,600 $ 30200 39100 8118 193182 Flexible Budget Variance 8,100 F DEDE 243 U Flexible Budget Volume 7,500 cases Variance $ 262,500 $ 30000 37500 7875 209625 3,500 F DEDE U Master Budget 7,400 cases $ 259,000 29600 37000 7770 184630
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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