The data to the right pertain to the operating budget of a manufacturing company. Compute the following (a) contribution margin (b) contribution rate (c) break-even point in sales dollars
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.
![The data to the right pertain to the
operating budget of a manufacturing
company. Compute the following (a)
contribution margin (b) contribution rate (c
) break - even point in sales dollars \table[[\
table[[Sales], [Fixed cost], [Total variable
cost]], \table[[$145,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffb2ed696-72a2-41ba-9302-4cfc4407434d%2F22c7782e-5f73-4ac1-8696-5814932d0ce2%2F5gu1cd8_processed.jpeg&w=3840&q=75)
Step by step
Solved in 3 steps
