ndowHelpnework.pdfAa v100000 38%= 38,000Question 4.Dawn is preparing a budget for her operation. She has forecasted revenue of $1,200,000 for thbudget period and now wants to complete the variable expense portion of her forecast. Dawnreviewed her historical cost percentage records. She then established her target variable costpercentages for several variable cost categories. Use Dawn's target cost percentages to compleher variable expense forecast and then answer the questions that follow.Revenue Forecast: $1,200,000HistoricalVariableExpense CostVariableTarget ExpensePercentageExpensePercentage2.8%ЕxpenseForecastMarketing3.0%36,000Glassware0.250.151,800Paper products0.250,253,000Linens1.00.759,000Flowers anddecorationsKitchen utensils0,500.253,0000.250.253,0001. What is the amount Dawn will budget for marketing?2. What is the amount Dawn will budget for linens?3. What is the amount Dawn will budget for kitchen utensils?4. What would be the impact on marketing costs if Dawn sets that expense at 3 percent ofrevenue and then exceeds her forecasted revenue amount?APR26MacBook Air口

the budgeted statements is prepared for analysis purpose for making decisions

Question 4. Dawn is preparing a budget for her operation. She has forecasted revenue of $1,200,000 for t budget period and now wants to complete the variable expense portion of her forecast. Dawn reviewed her historical cost percentage records. She then established her target variable cost percentages for several variable cost categories. Use Dawn's target cost percentages to comp. her variable expense forecast and then answer the questions that follow. Revenue Forecast: S1,200,000 Varlable Expense Cost Historical Variable Target Expense Percentage Expense Percentage 2.8% Expense Forecast Marketing 3.0% 36,000 Glassware 0.25 0.15 1,800 Paper products 0.25 0.25 3,000 Linens 1.0 0.75 9,000 Flowers and decorations 0.50 0.25 3,000 Kitchen utensils 0.25 0.25 3,000 1. What is the amount Dawn will budget for marketing? 2. What is the amount Dawn will budget for linens? 3. What is the amount Dawn will budget for kitchen utensils? 4. What would be the impact on marketing costs if Dawn sets that expense at 3 percent of revenue and then exceeds her forecasted revenue anmount?

Question 4. Dawn is preparing a budget for her operation. She has forecasted revenue of $1,200,000 for t budget period and now wants to complete the variable expense portion of her forecast. Dawn reviewed her historical cost percentage records. She then established her target variable cost percentages for several variable cost categories. Use Dawn's target cost percentages to comp. her variable expense forecast and then answer the questions that follow. Revenue Forecast: S1,200,000 Varlable Expense Cost Historical Variable Target Expense Percentage Expense Percentage 2.8% Expense Forecast Marketing 3.0% 36,000 Glassware 0.25 0.15 1,800 Paper products 0.25 0.25 3,000 Linens 1.0 0.75 9,000 Flowers and decorations 0.50 0.25 3,000 Kitchen utensils 0.25 0.25 3,000 1. What is the amount Dawn will budget for marketing? 2. What is the amount Dawn will budget for linens? 3. What is the amount Dawn will budget for kitchen utensils? 4. What would be the impact on marketing costs if Dawn sets that expense at 3 percent of revenue and then exceeds her forecasted revenue anmount?

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

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 29BEB: Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and...

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