Prepare a production budget for 2022 under each plan. BONITA INDUSTRIES Production Budget Plan A Plan B
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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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- Hill Industries had sales in 2021 of $6,800,000 and gross profit of $1,100,000. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 125,000 units from its 2021 level. Plan B would decrease the unit selling price by $0.50. The marketing department expects that the sales volume would increase by 130,000 units. At the end of 2021, Hill has 40,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 35,000 units. If Plan B is accepted, the ending inventory should be equal to 60,000 units. Each unit produced will cost $1.5 in direct labor, $1.3 in direct materials, and $1.2 in variable overhead. The fixed overhead for 2022 should be $1,895,000. (a) Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) 4 < $ tA tA HILL INDUSTRIES Sales Budget Plan A LA LA Plan…Coronado Industries had sales in 2021 of $5,698,400 and gross profit of $921,800. Management is considering two alternative budget plans to increase its gross profit in 2022.Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 104,750 units from its 2021 level. Plan B would decrease the unit selling price by $0.50. The marketing department expects that the sales volume would increase by 108,940 units.At the end of 2021, Coronado has 33,520 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 29,330 units. If Plan B is accepted, the ending inventory should be equal to 50,280 units. Each unit produced will cost $1.5 in direct labor, $1.3 in direct materials, and $1.2 in variable overhead. The fixed overhead for 2022 should be $1,588,010. Prepare a sales budget for 2022 under each plan.Coronado Industries had sales in 2021 of $5,698,400 and gross profit of $921,800. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 104,750 units from its 2021 level. Plan B would decrease the unit selling price by $0.50. The marketing department expects that the sales volume would increase by 108,940 units. At the end of 2021, Coronado has 33,520 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 29,330 units. If Plan B is accepted, the ending inventory should be equal to 50,280 units. Each unit produced will cost $1.5 in direct labor, $1.3 in direct materials, and $1.2 in variable overhead. The fixed overhead for 2022 should be $1,588,010. Prepare a production budget for 2022 under each plan.
- Coronado Industries had sales in 2021 of $5,521,600 and gross profit of $893,200. Management is considering two alternative budget plans to increase its gross profit in 2022.Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 101,500 units from its 2021 level. Plan B would decrease the unit selling price by $0.50. The marketing department expects that the sales volume would increase by 105,560 units.At the end of 2021, Coronado has 32,480 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 28,420 units. If Plan B is accepted, the ending inventory should be equal to 48,720 units. Each unit produced will cost $1.5 in direct labor, $1.3 in direct materials, and $1.2 in variable overhead. The fixed overhead for 2022 should be $1,538,740.Hill Industries had sales in 2021 of $6,800,000 and gross profit of $1,100,000. Management is considering two alternative budget plans to increase its gross profit in 2022 Plan A would increase the unit selling price from $8 to $8.4. Sales volume would decrease by 125,000 units from its 2021 level. Plan B would decrease the unit selling price by $0.5. The marketing department expects that the sales volume would increase by 130,000 units. At the end of 2021, Hill has 40,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 35,000 units. If Plan B is accepted, the ending inventory should be equal to 60,000 units. Each unit produced will cost $1.50 in direct labor, $1.30 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2022 should be $1,895,000.Jarziz Company is in the period of budgeting for 2022. The Sales manager forecasted the number of units to be sold as 25000 units and determined the selling price as 40 OMR per unit. The management revised these estimates with a 20 % increase in selling price and with a 25 % decrease in the number of units sold. According to these estimates, which of the following is revised Sales (OMR)? Select one: a. 1,150,000 b. 1,010,000 c. 900,000 d. 980,000
- Jarziz Company is in the period of budgeting for 2022. The Sales manager forecasted the number of units to be sold as 25000 units and determined the selling price as 40 OMR per unit. The management revised these estimates with a 20 % increase in selling price and with a 25 % decrease in the number of units sold. According to these estimates, which of the following is revised Sales (OMR)? Select one: a. 1,150,000 b. 1,010,000 c. 980,000 d. 900,000 Clear my choice 2) Some selected financial statement items belonging to MNO Company are given in the table below. According to this information, which of the following is Return on Assets (ROA)? Inventory 12,500 Current Assets 50,000 Current Liabilities 40,000 Non-current Assets 90,000 Net Profit 12,000 Shareholders' Equity 65,000 Select one: a. 12.2% b. 18.5% c. 9.23% d. 13.3%Mazoon Company is in the period of budgeting for 2022. The Sales manager forecasted the number of units to be sold as 35000 units and determined the selling price as 28 OMR per unit. The management revised these estimates with a 25 % increase in selling price and with a 15 % decrease in the number of units sold. According to these estimates, which of the following is revised Sales (OMR)? Select one: O a. 920000 O b. 9780000 c. 1112500 O d. 1041250 Next page Previous page IIBarka Company is in the period of budgeting for 2022. The Sales manager forecasted the number of units to be sold as 30000 units and determined the selling price as 20 OMR per unit. The management revised these estimates with a 15 % decrease in selling price and with a 25 % increase in the number of units sold. According to these estimates, which of the following is revised Sales (OMR)?
- Jarziz Company is in the period of budgeting for 2022. The Sales manager forecasted the number of units to be sold as 25000 units and determined the selling price as 40 OMR per unit. The management revised these estimates with a 20 % increase in selling price and with a 25 % decrease in the number of units sold. According to these estimates, which of the following is revised Sales (OMR)? Select one: O a. 1.010.000 O b. 1,150,000 O c. 980,000 O d. 900,000 Next page searchTop managers of Root Industries predicted 2024 sales of 14,700 units of its product at a unit price of $7.50. Actual sales for the year were 14,500 units at $9.50 each. Variable costs were budgeted at $2.70 per unit, and actual variable costs were $2.80 per unit. Actual fixed costs of $49,000 exceeded budgeted fixed costs by $5,000. Prepare Root's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Units Sales Revenue Variable Costs Contribution Margin Budget Amounts Per Unit 7.5 2.7 Root Industries Flexible Budget Performance Report For the Year Ended…Barka Company is in the period of budgeting for 2022. The Sales manager forecasted the number of units to be sold as 30000 units and determined the selling price as 20 OMR per unit. The management revised these estimates with a 15 % decrease in selling price and with a 25 % increase in the number of units sold. According to these estimates, which of the following is revised Sales (OMR)? Select one: a. 700000 b. 692500 c. 850000 d. 637500