Saved Help Save & Exit A machine distributor sells two models, basic and deluxe. The following information relates to its master budget. Basic Sales (units) Sales price per unit Variable costs per unit 12,500 $ 9,800 $ 7,840 Deluxe 7,500 $13,800 $ 9,900 Actual sales were 5,200 basic models and 3,700 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models. What is the sales quantity variance for the basic model?
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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