The following information was extracted from the budget for the year ended 31 December 2023: $Sales 10 400Selling price per calculator350Variable production cost per unit216Fixed production costs154 000Variable selling and administrative costs per unit29Fixed selling and administrative costs82 000 Calculate the following: a) Break-even quantity b) Break-even value using the marginal income ratio c) Margin of safety (in terms of units)
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.
Finance management
PnA calculators. The following information was extracted from the budget for the year
ended 31 December 2023:
$Sales 10 400Selling price per calculator350Variable production cost per unit216Fixed production costs154 000Variable selling and administrative costs per unit29Fixed selling and administrative costs82 000
Calculate the following:
a) Break-even quantity
b) Break-even value using the marginal income ratio
c) Margin of safety (in terms of units)
d) Expected total marginal income and net profit
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