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ahmedislife
01.08.2020 •
Business
The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed the following static budget for June. Great Cabinets is in the process of preparing the flexible budget and understanding the results. ActualResults FlexibleBudget StaticBudget Sales volume (in units) 12,000 16,000 Sales revenues $600,000 $ $800,000 Variable costs 240,000 $ 322,240 Contribution margin $360,000 $ $477,760 Fixed costs 275,100 $ 269,700 Operating profit $84,900 $ $208,060 The flexible budget will report for variable costs.
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Ответ:
The flexible budget will report $ 320,000 for variable costs.
Explanation:
Great Cabinets Company
Actual Results Flexible Budget Static Budget
Sales volume (in units) 12,000 16,000
Sales revenues $600,000 $ $ 800,000
Variable costs 240,000 $ 322,240
Contribution margin $360,000 $ $477,760
Fixed costs 275,100 $ 269,700
Operating profit $84,900 $ $208,060
The flexible budget will report $ 320,000 for variable costs.
For 16000 units the Flexible Budget would be
Sales Revenue ($600,000 /12000)16000 =$ 800,000
Variable Costs (240,000 /12000)16000 = $ 320,000
Contribution Margin $ 480,000
Fixed Costs 275,100 ( assuming fixed costs to be same
for 16000 units)
Operating Profit 204,900
Ответ: