The Butterfly Corporation had the following information(Account) that pertained to its March budget: - Budgeted sales are $200,000 for February. - Collections of sales are 50% in the month of sale and 50% the next month. - - Cost of goods sold averages 70% of sales. Merchandise purchases total $150,000 in February. - Marketing costs are $3000 each month. - Administrative costs are $15,000 each month. What is the budgeted gross margin in dollars for February?

The Butterfly Corporation had the following information(Account) that pertained to its March budget: - Budgeted sales are $200,000 for February. - Collections of sales are 50% in the month of sale and 50% the next month. - - Cost of goods sold averages 70% of sales. Merchandise purchases total $150,000 in February. - Marketing costs are $3000 each month. - Administrative costs are $15,000 each month. What is the budgeted gross margin in dollars for February?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 2E: The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units....

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