The Personal Care Product Division of Ligo Company produces and markets two products for use in personal hygiene: Shampoo and Bath Soap. The following data were gathered on activities last month: Sales in units 2000 9000 Selling price per unit Variable production cost per unit Traceable fixed production cost Variable selling expense per unit Traceable fixe selling expense Allocated division administrative expense P280,000 P350 P140 P140 P 35 P84,000 P14 P231,000 P7 P14,000 P21,000 P504,000
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.
REQUIRED:
Calculate the company's total contribution margin last month.
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