The cost accountant for Carlos Candies, Inc. prepared the following static budget based on expected activity of 4,400 units: Revenues $ 134,000 Variable Costs (101,200 ) Contribution Margin 32,800 Fixed Costs (24,000 ) Net Income $ 8,800 If Carlos actually produced 3,400 units, the flexible budget would show fixed costs amounting to
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 4,400 units:
| Revenues | $ | 134,000 | ||
| Variable Costs | (101,200 | ) | ||
| Contribution Margin | 32,800 | |||
| Fixed Costs | (24,000 | ) | ||
| Net Income | $ | 8,800 | ||
If Carlos actually produced 3,400 units, the flexible budget would show fixed costs amounting to
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