The cost accountant for Carlos Candies, Inc. prepared the following static budget based on expected activity of 2,600 units: Revenues $ 79,000 Variable Costs (48,100 ) Contribution Margin 30,900 Fixed Costs (19,500 ) Net Income $ 11,400 If Carlos actually produced 1,800 units, the flexible budget would show variable costs of
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 cost accountant for Carlos Candies, Inc. prepared the following static budget based on expected activity of 2,600 units:
| Revenues | $ | 79,000 | ||
| Variable Costs | (48,100 | ) | ||
| Contribution Margin | 30,900 | |||
| Fixed Costs | (19,500 | ) | ||
| Net Income | $ | 11,400 | ||
If Carlos actually produced 1,800 units, the flexible budget would show variable costs of
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