Springwater Brewery has two main products: premlum and regular ale. Its operating results and master budget for 20XX (000s omitted) follow: Barrels Sales Variable expenses Contribution margin Fixed expenses Operating income Operating Rasults of 20XX Regolar Premium 220 $ 37,400 24,200 $ 13,200 11,000 $ 2,200 660 $ 82,500 56,100 Total 880 119,900 90,300 $ 39,600 20,000 $ 26,400 9,000 $ 17,400 $ 19,600 Master Budget for 20x2 Premium 240 $ 38,400 24,000 $ 14,400 11,000 $3,400 360 $ 46,800 30,600 $ 16,200 9,000 $ 7,200 Total 600 $85,200 54,600 @ 30,600 20,000 9 10,600 Pam Kuder, CEO, expected the total industry sales to be 1,500,000 barrels during the period. After the year, Mark Goldfeder, the controller, reported that the total sales for the Industry were 1,760,000 barrels.
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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