67.3k views
5 votes
A company budgets​ 10,000 units of sales based on a projected selling price of​ $13.00. The actual units sold were​ 15,000 at a price of​ $10. What is the flexible budget for​ sales?

1 Answer

1 vote

Answer:

The flexible budget for sales = $195,000

Step-by-step explanation:

A flexible budget is that which is prepared for actual level of activity achieved. It is used for control purpose to determine how where the a business is doing in terms of performance .

The flexible budgeted is usually prepared at the end of the period to which it relates. In other words, it is prepared in retrospect. And it uses the assumptions of the fixed budget.

The flexible budget for sales = actual sales in units × Standard selling price

= 15,000× $13.00 = $195,000

The flexible budget for sales = $195,000

User Aramis
by
5.8k points