Workman Co. (Workman) had sales of 15,000 units of its only product in Year 10, with a selling price of $66 per unit. In Year 11, the sales manager anticipates Workman selling 20% more units than it sold in Year 10, with a selling price of $68 per unit. The controller decides to use a traditional budgeting approach and to apply a conservat increase of 10% to all income statement line items. Which one of the following is the amount of sales revenue that will appear in the budgeted income statement for Year using the controller's approach? A. $1,089,000 B. $1,224, 000 C. S1, 188, 000 D. S1, 122, 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.
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