The actual information pertains to the month of June. As part of the budgeting p developed the following static budget for September. Colonial is in the process understanding the results. Actual Results Flexible Budget Static Budget Sales volume (in units) 14,000 22,500 Sales revenues $590,000 $4 $675,000 Variable costs 256,000 2$ 300,000 Contribution margin $334,000 24 $375,000 Fixed costs 237,000 2$ 244,000 Operating profit $97,000 24 $131,000 The flexible budget for sales revenues will be? O A. $675,000 B. $420,000 OC. $590,000 O D. $697,500
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.
![The actual information pertains to the month of June. As part of the budgeting process, Colonial Fencing Company
developed the following static budget for September. Colonial is in the process of preparing the flexible budget and
understanding the results.
Actual Results Flexible Budget Static Budget
22,500
Sales volume (in units)
14,000
Sales revenues
$590,000
$675,000
Variable costs
256,000
2$
300,000
Contribution margin
$334,000
24
$375,000
Fixed costs
237,000
24
244,000
Operating profit
$97,000
2$
$131,000
The flexible budget for sales revenues will be?
A. $675,000
O B. $420,000
Oc. $590,000
O D. $697,500
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