From his luxury food truck, Chef Timon Balloo plans to sell small Poke bowls for $11.60 and large Poke bowls for $24.60. The variable cost per unit is $5.60 for the small Poke bowls and $12.20 for the large bowls. Chef Balloo envisions annual sales of 3,150 small bowls and 1,865 large Poke bowls. What is the annual operating cash flow if annual fixed costs will be $2,120 and the depreciation expense $1,450? Note: Timon Balloo’s tax rate is 40%. a. $24,524 b. $25,796 c. $16,542 d. $23,944 e. $26,827

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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.