Wallace, Inc., prepared the following budgeted data based on a sales forecast of $6,000,000: Variable Fixed Direct materials $1,600,000 Direct labor 1,400,000 Factory overhead 600,000 $ 900,000 Selling expenses 240,000 360,000 Administrative expenses 60,000 140,000 Total $3,900,000 $1,400,000 aaaaaaaa aaaaaaaa What would be the amount of sales dollars at the break-even point? A) $2,250,000 B) $3,500,000 C) $4,000,000 D) $5,300,000
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.
Wallace, Inc., prepared the following budgeted data based on a sales
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