The static budget, at the beginning of the month, for Jabari Company follows: Static budget Sales volume: 2,100 units; Sales price: $50 per unit Variable costs: $12.00 per unit; Fixed costs: $26,000 per month Operating income: $53,800 Actual results, at the end of the month, follows: Actual results Sales volume: 1,850 units, Sales price: $60 per unit Variable costs: $18.00 per unit; Fixed cost: $36,000 per month Operating income $41,700 Calculate the sales volume variance for operating income. OA. $250 F B. $2,600 U C. $9,500 F D. $9,500 U
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.
a4
Step by step
Solved in 3 steps
