Budgeted information for X Ltd for the following period, analyzed by product, is shown below: Product A Product B Product C Selling price per unit $11 $10.5 $8 Variable costs per unit $5.8 $6 $5.2 Attributable fixed costs $275000 $337000 $296000 Sales Units for Product A is 444000, for Product B is 666000 and for product C is 355200, General fixed costs, which are apportioned to products as a percentage sales are budgeted at $1668000. Required: (1) Calculate the budgeted profit of X Ltd, and each of its products.
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.
Budgeted information for X Ltd for the following period, analyzed by product, is shown below:
Product A Product B Product C
Selling price per unit $11 $10.5 $8
Variable costs per unit $5.8 $6 $5.2
Attributable fixed costs $275000 $337000 $296000
Sales Units for Product A is 444000, for Product B is 666000 and for product C is 355200,
General fixed costs, which are apportioned to products as a percentage sales are budgeted at $1668000.
Required: (1) Calculate the budgeted profit of X Ltd, and each of its products.
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