ABC Ltd. is preparing a budget for 2018. Following are the information related to budget preparation: Budgeted selling price per unit = SAR 200 per unit Total fixed costs = SAR 250,000 Variable costs = SAR 65 per unit Required: Prepare flexible budget for 2,000, 2,500, 3,000 and 3,500 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.
ABC Ltd. is preparing a budget for 2018. Following are the information related to budget preparation:
Budgeted selling price per unit = SAR 200 per unit
Total fixed costs = SAR 250,000
Variable costs = SAR 65 per unit
Required:
Prepare flexible budget for 2,000, 2,500, 3,000 and 3,500 units
.
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