Jay Draperies makes and sells curtains. Information related to its performance in 2020 is given below: (Click the icon to view the data.) Calculate JayDraperies' flexible budget for (a) revenues, (b) variable costs, (c) fixed costs, and (d) operating income. ... Calculate Jay's flexible budget for (a) revenues. Begin by determining the formula and then solve for the amount. Actual units sold Flexible budget for revenues 1500 x Budgeted selling price per unit = 200 = 300000 Calculate Jay's flexible budget for (b) variable costs. Begin by determining the formula and then solve for the amount. Actual units sold Budgeted variable cost per unit = 1500 × 110 = Flexible budget for variable costs 165000 Calculate Jay's flexible budget for (c) fixed costs. Jay's flexible budget for fixed costs is 77000 Calculate Jay's flexible budget for (d) operating income. Begin by determining the formula and then solve for the amount. (Abbreviations used: rev = revenue, vc = variable costs, fc = fixed costs.) Flexible budget for rev 300000 Flexible budget for vc 165000 Flexible budget for fc 77000 Flexible budget for operating income 58000 Data table Actual Budgeted Units made and sold 1,500 1,400 Selling price $190 per curtain $200 per curtain Variable costs $ 162,750 $110 per curtain Fixed costs $ 75,000 $ 77,000
Jay Draperies makes and sells curtains. Information related to its performance in 2020 is given below: (Click the icon to view the data.) Calculate JayDraperies' flexible budget for (a) revenues, (b) variable costs, (c) fixed costs, and (d) operating income. ... Calculate Jay's flexible budget for (a) revenues. Begin by determining the formula and then solve for the amount. Actual units sold Flexible budget for revenues 1500 x Budgeted selling price per unit = 200 = 300000 Calculate Jay's flexible budget for (b) variable costs. Begin by determining the formula and then solve for the amount. Actual units sold Budgeted variable cost per unit = 1500 × 110 = Flexible budget for variable costs 165000 Calculate Jay's flexible budget for (c) fixed costs. Jay's flexible budget for fixed costs is 77000 Calculate Jay's flexible budget for (d) operating income. Begin by determining the formula and then solve for the amount. (Abbreviations used: rev = revenue, vc = variable costs, fc = fixed costs.) Flexible budget for rev 300000 Flexible budget for vc 165000 Flexible budget for fc 77000 Flexible budget for operating income 58000 Data table Actual Budgeted Units made and sold 1,500 1,400 Selling price $190 per curtain $200 per curtain Variable costs $ 162,750 $110 per curtain Fixed costs $ 75,000 $ 77,000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...
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Concept explainers
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.
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Transcribed Image Text:Jay Draperies makes and sells curtains. Information related to its performance in 2020 is given below:
(Click the icon to view the data.)
Calculate JayDraperies' flexible budget for (a) revenues, (b) variable costs, (c) fixed costs, and (d) operating income.
...
Calculate Jay's flexible budget for (a) revenues. Begin by determining the formula and then solve for the amount.
Actual units sold
Flexible budget for revenues
1500
x
Budgeted selling price per unit
=
200
=
300000
Calculate Jay's flexible budget for (b) variable costs. Begin by determining the formula and then solve for the amount.
Actual units sold
Budgeted variable cost per unit =
1500
×
110
=
Flexible budget for variable costs
165000
Calculate Jay's flexible budget for (c) fixed costs.
Jay's flexible budget for fixed costs is
77000
Calculate Jay's flexible budget for (d) operating income. Begin by determining the formula and then solve for the amount.
(Abbreviations used: rev = revenue, vc = variable costs, fc = fixed costs.)
Flexible budget for rev
300000
Flexible budget for vc
165000
Flexible budget for fc
77000
Flexible budget for
operating income
58000
Data table
Actual
Budgeted
Units made and sold
1,500
1,400
Selling price
$190 per curtain
$200 per curtain
Variable costs
$
162,750
$110 per curtain
Fixed costs
$
75,000 $
77,000
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