Question

The actual information pertains to the month of June. As part of the budgeting​ process, Colonial Fencing Company developed the following static budget for September. Colonial is in the process of preparing the flexible budget and understanding the results. Actual Results Flexible Budget Static Budget Sales volume​ (in units) 11 comma 000 ​ ________ 20 comma 500 Sales revenues $ 610 comma 000 ​$ $ 615 comma 000 Variable costs ​256,000 ​$ ________ ​300,000 Contribution margin $ 354 comma 000 ​$ ​$315 comma 000 Fixed costs 231 comma 000 ​$ ________ 240 comma 000 Operating profit $ 123 comma 000 ​$ ________ $ 75 comma 000 The flexible budget for sales revenues will​ be?

Answer 1

330,000

Step-by-step explanation:

Selling price per unit as per static budget

=$615,000÷$20,500

=$30 per units

Actual sales volume =11,000 units

Sales Revenue as per flexible budget = Actual sales volume × Budgeted selling price per unit

=11,000×30

=330,000

Therefore the flexible budget for sales revenues will​ be 330,000