Tiger Stripes, Inc. manufactures plush animals in the shape of Tigers. They expect to have the following Sales in the first half of 2018 – January 100000 units, February, 150000 units, March 200000 units, April 250000 units, May 300000 units and June 350000 units. Management would like you to prepare two (2) Sales Budgets – one at the current price of $12 per unit and one by increasing the price by 10% per month. -Sales Budget #1 - $12 per unit -Sales Budget #2 – 10% increase budget.
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.
Tiger Stripes, Inc. manufactures plush animals in the shape of Tigers. They expect to have the following Sales in the first half of 2018 – January 100000 units, February, 150000 units, March 200000 units, April 250000 units, May 300000 units and June 350000 units.
Management would like you to prepare two (2) Sales Budgets – one at the current price of $12 per unit and one by increasing the price by 10% per month.
-Sales Budget #1 - $12 per unit
-Sales Budget #2 – 10% increase budget.
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