Basic model and the deluxe model

Assignment Help Managerial Accounting

Reference no: EM133441066

Question: LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic model and the Deluxe model. The company began operations on January 1, 20Y1, and is planning for 20Y2, its second year of operations, by preparing budgets from its master budget.

The company is trying to decide how many units to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In addition, the company is interested in budgeting for selling and administrative costs, and in creating a budgeted income statement showing a prediction of net income for 20Y2.

You have been asked to assist the controller of LearnCo in preparing the 20Y2 budgets.

The sales budget often uses the prior year's sales as a starting point, and then sales quantities are revised for various factors such as planned advertising and promotion, projected pricing changes, and expected industry and general economic conditions. LearnCo has completed reviewing its prior year's sales and has prepared the following sales budget.

After reviewing LearnCo's sales budget, you note that three numbers have been omitted. The company's controller has told you that the units sold for the Basic and Deluxe models are expected to be the same. Fill in the missing amounts.

Reference no: EM133441066

Questions Cloud

Would you recommend that molly consume these shakes : The label suggests that the shakes are low in calories but high in sugar. Would you recommend that Molly consume these shakes as a part of her weight-loss

Describing an actual problem in your office : Write down a memorandum addressed to your instructor. Describing an actual problem in your office, school, church, or volunteer organization

What effect would increased muscle tissue have on a person : What effect would increased muscle tissue have on a person's metabolism? Is taking a daily multi-vitamin supplement necessary for good health?

What are the key features : What are the key features and do included in a due diligence process and definition of due diligence

Basic model and the deluxe model : Basic model and the Deluxe model. The company began operations on January 1, 20Y1, and is planning for 20Y2, its second year of operations, by preparing budgets

What do you think about eating cloned meat and genetically : What do you think about eating cloned meat and genetically modified crops? We have been eating genetically modified crops for at least 10 years. As of now, food

Deceased mother in-law in narcotics raid : Police officers mistakenly entered the apartment of the deceased mother in-law in a narcotics raid.

Would you consider having a microchip inserted : Different ways you could use a microchip that was embedded in your hand? Such chips are usually inserted in the skin between the thumb and forefinger

Discuss why obesity is considered a disease : Discuss why obesity is considered a disease? Discuss how portion sizes may contribute to obesity. Explain how high fructose corn syrup contributes to obesity

User Account

All Pages