The budget assumes the company will sell 30,000 units. Sales $600,000 Less expenses: Variable $390,000 Fixed 140,000 $530,000 Net income $70,000 Calculate the break-even point in sales dollars
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 budget assumes the company will sell 30,000 units.
Sales $600,000
Less expenses:
Variable $390,000
Fixed 140,000 $530,000
Net income $70,000
Calculate the break-even point in sales dollars.
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