Sales.. $2,800,000 1,600,000 Variable expenses Contribution margin Fixed expenses: 1,200,000 Advertising, salaries, and other fixed out-of-pocket costs $500,000 Depreciation .. 400,000 Total fixed expenses 900,000 Net operating income $ 300,000

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Q: Hardev

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.