Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] The fixed budget for 20,800 units of production shows sales of $540,800; variable costs of $62,400; and fixed costs of $141,000. If the company actually produces and sells 26,200 units, calculate the flexible budget income. Sales Variable costs Contribution margin Fixed costs Fixed costs ------Flexible Budget------ Variable Amount Total Fixed per Unit Cost $ 20 3 17 $ 142,000 ------Flexible Budget at ------ 20,800 units 26,200 units $ $ $ 432,000 $ 64,800 367,200 $ 142,000 225,200 $ 538,000 80,700 457,300 142,000 315,300
Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] The fixed budget for 20,800 units of production shows sales of $540,800; variable costs of $62,400; and fixed costs of $141,000. If the company actually produces and sells 26,200 units, calculate the flexible budget income. Sales Variable costs Contribution margin Fixed costs Fixed costs ------Flexible Budget------ Variable Amount Total Fixed per Unit Cost $ 20 3 17 $ 142,000 ------Flexible Budget at ------ 20,800 units 26,200 units $ $ $ 432,000 $ 64,800 367,200 $ 142,000 225,200 $ 538,000 80,700 457,300 142,000 315,300
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 26BEB: Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes...
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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.
Question
![Use the following information for the Quick Study below. (Algo)
[The following information applies to the questions displayed below.]
The fixed budget for 20,800 units of production shows sales of $540,800; variable costs of $62,400; and fixed costs of
$141,000.
If the company actually produces and sells 26,200 units, calculate the flexible budget income.
Sales
Variable costs
Contribution margin
Fixed costs
Fixed costs
------Flexible Budget------
Variable Amount Total Fixed
per Unit
Cost
$
20
3
17
$
142,000
20,800 units 26,200 units
$
$
------Flexible Budget at ------
$
432,000 $
64,800
367,200 $
142,000
225,200
$
538,000
80,700
457,300
142,000
315,300](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8ba04fc-1570-45e0-8a29-d848c02c3c3e%2F4a3e8bb9-245e-468b-9f37-5f79b2359f52%2Fi5enh1i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the following information for the Quick Study below. (Algo)
[The following information applies to the questions displayed below.]
The fixed budget for 20,800 units of production shows sales of $540,800; variable costs of $62,400; and fixed costs of
$141,000.
If the company actually produces and sells 26,200 units, calculate the flexible budget income.
Sales
Variable costs
Contribution margin
Fixed costs
Fixed costs
------Flexible Budget------
Variable Amount Total Fixed
per Unit
Cost
$
20
3
17
$
142,000
20,800 units 26,200 units
$
$
------Flexible Budget at ------
$
432,000 $
64,800
367,200 $
142,000
225,200
$
538,000
80,700
457,300
142,000
315,300
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