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 $462,000. How many units does the company plan to sell in October? You may need to round to match. 12,086 units 13,714 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 $462,000.
How many units does the company plan to sell in October? You may need to round to match.
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12,086 units |
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13,714 units |
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12,800 units |
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13,000 units |
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