Santorini Corporation has experienced a number of out of stock situations with respect to its finished goods inventories Inventory at the end of May, for example, was only 545 units an all time low Management desires to implement a policy whereby finished goods inventory is 60 % of the following month's sales Budgeted sales for June, and July are expected to be 3200 units, and 4400 units respectively Required Determine the number of units that Santorini must produce in June.
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.
Santorini Corporation has experienced a number of out of stock situations with respect to its finished goods inventories Inventory at the end of May, for example, was only 545 units an all time low Management desires to implement a policy whereby finished goods inventory is 60 % of the following month's sales Budgeted sales for June, and July are expected to be 3200 units, and 4400 units respectively Required Determine the number of units that Santorini must produce in June.
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