Wilde Corporation budgeted the following costs for the production of its one and only product for the next fiscal year: Direct materials $1,140,000 Direct labor 795,000 Manufacturing overhead Variable 840,000 Fixed 700,000 Selling and administrative Variable 360,000 Fixed 530,000 Total costs $4,365,000 Wilde has an annual target operating income of $920,000. The markup percentage for setting prices as a percentage of the variable cost of the product is ________. A. 46.3% B. 27.5% C. 68.6% D. 39.2%
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.
|
Direct materials
|
$1,140,000
|
|
|
Direct labor
|
795,000
|
|
|
Manufacturing
|
|
|
|
Variable
|
840,000
|
|
|
Fixed
|
700,000
|
|
|
Selling and administrative
|
|
|
|
Variable
|
360,000
|
|
|
Fixed
|
530,000
|
|
|
Total costs
|
$4,365,000
|
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
