Prepare a monthly flexible selling expenses budget for Stone Company for sales volumes of $300,000, $350,000, and $400,000, based on the following data: Sales commissions 6% of sales Sales manager's salary $120,000 per month Advertising expense $90,000 per month Shipping expense 1% of sales Miscellaneous selling expense $4,000 per month plus 1.5% of sales Stone Company Monthly Selling Expenses Budget $300,000 $350,000 $400,000 Variable Expenses: Fixed Expenses: Total Selling Expenses
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.
Prepare a monthly flexible selling expenses budget for Stone Company for sales volumes of $300,000, $350,000, and $400,000, based on the following data:
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Sales commissions |
6% of sales |
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Sales manager's salary |
$120,000 per month |
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Advertising expense |
$90,000 per month |
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Shipping expense |
1% of sales |
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Miscellaneous selling expense |
$4,000 per month plus 1.5% of sales |
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Stone Company Monthly Selling Expenses Budget |
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$300,000 |
$350,000 |
$400,000 |
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Variable Expenses: |
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Fixed Expenses: |
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Total Selling Expenses |
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