The fixed budget for 21,500 units of production shows sales of $559,000; variable costs of $64,500; and fixed costs of $142,000. If the company actually produces and sells 26,500 units, calculate the flexible budget Income. Sales Variable costs Contribution margin Fixed costs Income ---Flexible Budget-.... Variable Amount per Unit S 689,000 689,000 Total Fixed Cost ------Flexible Budget at 21,500 units S S 26,500 units 0 $ 0 $ 0
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.
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The fixed budget for 21,500 units of production shows sales of $559,000; variable costs of $64,500; and fixed costs of
$142,000.
If the company actually produces and sells 26,500 units, calculate the flexible budget Income.
Sales
Variable costs
Contribution margin
Fixed costs
Income
------Flexible Budget-.....
Variable Amount Total Fixed
per Unit
Cost
$
689,000
689,000
------Flexible Budget at
21,500 units
$
$
0
0
26,500 units
$
$
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffee3d6f2-4efe-4338-b252-3614566b90ee%2Fe7871094-b139-4f52-9fa0-cbba14c4ac9f%2F90ybk2r_processed.png&w=3840&q=75)
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