Your Corporation makes and sells a single product. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions.................................. $2.10 Shipping................................................. $3.90 Advertising............................................. $7.40 $34,000 Executive salaries................................... $198,000 Depreciation on office equipment.......... $10,000 Other....................................................... $0.60 $38,000 All of these expenses (except depreciation) are paid in cash in the month they are incurred. The budgeted cash disbursements for selling and administrative expenses for October total $449,200. How many units does the company plan to sell in October? You may need to round to match. Group of answer choices 13,714 units 12,086 units 12,800 units 13,000 units
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.
Your Corporation makes and sells a single product. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available:
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Variable Cost Per Unit Sold
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Monthly Fixed Cost
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Sales commissions..................................
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$2.10
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Shipping.................................................
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$3.90
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Advertising.............................................
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$7.40
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$34,000
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Executive salaries...................................
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$198,000
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$10,000
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Other.......................................................
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$0.60
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$38,000
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All of these expenses (except depreciation) are paid in cash in the month they are incurred. The budgeted cash disbursements for selling and administrative expenses for October total $449,200. How many units does the company plan to sell in October? You may need to round to match.
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