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Please show how to correctly work through the problem!! Will thumbs up!! Thank you!! Problem 16-55 (Static) Solve for Master Budget Given Actual Results (LO
Please show how to correctly work through the problem!! Will thumbs up!! Thank you!!
Problem 16-55 (Static) Solve for Master Budget Given Actual Results (LO 16-2, 4) The following are the actual results for Bentler Associates for the most recent period: The company planned to produce and sell 72,000 units for $12.50 each. At that volume, the contribution margin would have been $648,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 72,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume." Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. Construct the master budget for the period. Prepare a profit variance analysis. as a whole numberStep by Step Solution
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