Final answer:
A sales budget by Fuqua Company projects future sales revenue for an upcoming period, an integral part of financial planning. Using available information, we've also determined that a firm with $1 million in sales revenue and $950,000 in total expenses had an accounting profit of $50,000.
Step-by-step explanation:
The question concerns the sales budget projection by Fuqua Company. In general, a sales budget is a financial plan that estimates future sales revenue for a specific period. Such budgets are essential components of a firm's overall financial planning and strategic management processes. To explicate further, the sales budget will project the amount of revenue the company expects to earn from sales in the upcoming period, often broken down by product line or market segment.
To address the self-check question provided as a reference, we can calculate the accounting profit. Given that the firm had sales revenue of $1 million last year, and expenses on labor, capital, and materials totaling $600,000, $150,000, and $200,000 respectively, we can calculate the firm's accounting profit by subtracting the expenses from sales revenue: $1,000,000 - ($600,000 + $150,000 + $200,000) = $50,000. Hence, the firm's accounting profit was $50,000 last year.