The following are selected budgeted data for Green Company for the coming year: Budgeted sales ₱600,000 Selling price per unit ₱12 Fixed expenses ₱150,000 Variable cost per unit ₱8 What is the margin of safety percentage? Show solution Group of answer choices 25% 15% 30% 20%
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 following are selected budgeted data for Green Company for the coming year:
|
Budgeted sales |
₱600,000 |
|
Selling price per unit |
₱12 |
|
Fixed expenses |
₱150,000 |
|
Variable cost per unit |
₱8 |
What is the margin of safety percentage? Show solution
Group of answer choices
25%
15%
30%
20%
Step by step
Solved in 3 steps
