Stafford Company prepared a static budget for a production and sales volume of 12,300 units. What is the net income if 11,300 units are sold? apter 8 Stafford Company prepared a static budget for a production and sales volume of 12,300 units. Per unit Static Budget standards Number of units 12,300 Sales revenue $88.00 $1,082,400 Variable manufacturing costs: Materials. $20.00 246,000 Labor $18.00 221,400 Overhead $ 6.50 79,950 Variable general, selling, and administrative costs $20.00 246,000 Contribution margin $ 289,050 Fixed costs Manufacturing overhead 123,800 General, selling, and administrative costs 68,000 Hot 97,250
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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