The European Electronics Company has 3 divisions. The following budgeted data is available. German Italian Sweden Sales 2,500 units 2,500 units 2,500 units Selling price £80 per unit £85 per unit £90 per unit Variable expense £35 per unit £40 per unit £38 per unit Fixed expense £37,500 £40,000 £50,000 German Division: If the unit contribution margin is increased by 10%, the total fixed expense is decreased by 20%, and all other data remain as in the budget, operating profit will be:
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 European Electronics Company has 3 divisions. The following budgeted data is available.
German Italian Sweden
Sales 2,500 units 2,500 units 2,500 units
Selling price £80 per unit £85 per unit £90 per unit
Variable expense £35 per unit £40 per unit £38 per unit
Fixed expense £37,500 £40,000 £50,000
German Division: If the unit contribution margin is increased by 10%, the total fixed expense is decreased by 20%, and all other data remain as in the budget, operating profit will be:
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