The sales budget (in units) of LIVES Inc. for the period January to June 2021 is as follows: January: 70,000 February: 80,000 March: 8O,000 April: 90,000 May: 90,000 June: 100,000 The firm's policy is maintain inventory at end of each month equal to 60% of sales for the month following. Sales are expected to decrease by 15% during July 2021. What is the total budgeted production in units for the 3 months period ending June 30, 2021?
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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