GHI Company manufactures two products that sell to the same market. Its budget and operating results for 2021 are as follows: Budgeted Actual Unit sales Product A 30,000 35,000 Product B 60,000 65,000 Unit contribution margin Product A P4.00 P 3.00 Product B PI0.00 P12.00 Unit solling price Product A P10.00 P12.00 Product B P25.00 P24.00 Industry volume was estimated to be 1,500,000 units at the time the budget was prepared.
GHI Company manufactures two products that sell to the same market. Its budget and operating results for 2021 are as follows: Budgeted Actual Unit sales Product A 30,000 35,000 Product B 60,000 65,000 Unit contribution margin Product A P4.00 P 3.00 Product B PI0.00 P12.00 Unit solling price Product A P10.00 P12.00 Product B P25.00 P24.00 Industry volume was estimated to be 1,500,000 units at the time the budget was prepared.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 20E: Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,...
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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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Transcribed Image Text:GHI Company manufactures two products that sell to the same market. Its budget and
operating results for 2021 are as follows:
Budgeted Actual
Unit sales
Product A
30,000
35,000
Product B
60,000
65,000
Unit contribution margin
Product A
P 4.00
P 3.00
Product B
PI0.00
P12.00
Unit selling price
Product A
PI0.00
P12.00
Product B
P25.00
P24.00
Industry volume was estimated to be 1,500,000 units at the time the budget was prepared.
Actual industry volume for the period was 2,000,000 units.
The market size contribution margin variance is
Select one:
a. P240,000 U
O b. P240,000 F
c. P160,000 F
d. PI60,000 U
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