The following information pertains to the January operating budget for Murphy Corporation, a retailer: Budgeted sales are $208,000 for January Collections of sales are 40% in the month of sale and 60% the next month Cost of goods sold averages 61% of sales Merchandise purchases total $155,000 in January Marketing costs are $3,400 each month Distribution costs are $5,500 each month Administrative costs are $10,300 each month For January, budgeted gross margin is ________. $83,200 $81,120 $53,000 $126,880
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 information pertains to the January operating budget for Murphy Corporation, a retailer:
Budgeted sales are $208,000 for January
Collections of sales are 40% in the month of sale and 60% the next month
Cost of goods sold averages 61% of sales
Merchandise purchases total $155,000 in January
Marketing costs are $3,400 each month
Distribution costs are $5,500 each month
Administrative costs are $10,300 each month
For January, budgeted gross margin is ________.
- $83,200
- $81,120
- $53,000
- $126,880
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
