Why I’m Always Over Budget (COB)
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.
Chick-Fil-A is Why I’m Always Over Budget (COB) is trying to decide the best use of its time on the assembly line. Chicken nuggets require 1 labor hour each, but chicken strips require 3 labor hours each. Chicken nuggets sell for $42 with a variable cost of $20. Chicken strips sell for $57 with a variable cost of $24. Calculate the following:
What is the unit contribution margin per assembly line hour for chicken nuggets?
What is the contribution margin per assembly line hour for chicken strips?
Which product should COB focus on when allocating assembly line hours?
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