Bambini Company produces two products and the following budget applies: Selling price Variable cost Contribution margin Fixed cost Product M RM 6 2 4 Product N RM 12 4 8 RM 100,000 RM 200,000 Calculate the breakeven points for each product and comment on your findings.
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.
Bambini Company produces two products and the following budget applies:
Selling price
Variable cost
Contribution margin
Fixed cost
Product M
RM
6
2
4
Product N
RM
12
4
8
RM 100,000
RM 200,000
Calculate the breakeven points for each product and comment on your findings.
Step by step
Solved in 4 steps