1. ABC Retail

Scenario: Budgeting and Variance Analysis

Data: ABC Retail prepares a sales budget for the upcoming quarter based on the following:

• Expected unit sales: 10,000 units
• Selling price per unit: $100
• Variable cost per unit: $60
• Fixed costs: $200,000

Requirements:

1. Prepare ABC Retail's sales budget for the upcoming quarter.
2. Calculate the budgeted revenue, variable costs, and contribution margin.
3. Discuss the importance of budgeting in financial planning and control at ABC Retail.
4. Analyze the variance between budgeted and actual sales performance.
5. Evaluate ABC Retail's budgeting process and recommend improvements.