The following monthly budgeted data is available for the International Company: Product C Product J Product R Sales $500,000 $300,000 $900,000 Variable expenses 300,000 210,000 720,000 Contribution margin $ 200,000 $ 90,000 $ 180,000 Budgeted net income for the month is $220,000. Required: a. Calculate the break-even sales for the month. Round up your answers to the nearest whole number b. Calculate the margin of safety. c. Calculate the operating leverage.
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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