Wallace, Inc., prepared the following budgeted data based on a sales forecast of $6,000,000: Direct materials Direct labour Factory overhead Selling expenses Administrative expenses Total Variable $2,600,000 1,000,000 400,000 200,000 50,000 $4,250,000 Fixed $1,000,000 300,000 180,000 $1,480,000 What would be the amount of sales dollars at the break-even point? (Do not round intermediate calculations and round your final answer to nearest whole dollar).
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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