Prepare a budget for may for wildhorse salsa

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Reference no: EM132990810

Wildhorse's Salsa is in the process of preparing a production cost budget for May. Actual costs in April were:

Wildhorse's Salsa

Production Costs

April 2020

Production 25,000 Jars of Salsa

Ingredient cost (variable) $ 22,250

Labor cost (variable) 14,000

Rent (fixed) 5,000

Depreciation (fixed) 6,000

Other (fixed) 1,000

Total $ 48,250

Problem 1: Using this information, prepare a budget for May. Assume that production will increase to 30,000 jars of salsa, reflecting an anticipated sales increase related to a new marketing campaign.

Reference no: EM132990810

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