Newton cellular manufactures and sells the top line cell phone for the year 2022. Newton has estimated the following: contribution margin per phone $200  variable cost per Cellphone 450  annual fix cost total 180,000  net loss -$400  Given: Variable Cost as a %of sales 70% Annual fixed costs - total $600,000   What is the contribution margin ratio? What is the break even point in sales dollars? If the company is operating at a $100,000 loss what are the dollar sales? If the company is operating at a $100,000 profit what are the dollar sales?

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.