Consider the budget versus actual figures given for the end of the first quarter
ID: 2579557 • Letter: C
Question
Consider the budget versus actual figures given for the end of the first quarter:
Apollo
Budgeted statement of financial performance
March 20XX Budget vs. Actual
Current Month
Budget
Actual
Sale: credit (30 days)
$20,000
$47,500
Sales: cash
18,000
16,800
Total
38,000
64,300
Cost of goods sold
$10,000
$9,000
Wages
8,000
13,000
Electricity
3,000
3,000
Rent
7,500
7,500
Total
28,000
32,500
Sales contribution
10,000
31,800
From the figures shown, what type of business is it?
What line/s affects your answer? (30–50 words)
Current Month
Budget
Actual
Sale: credit (30 days)
$20,000
$47,500
Sales: cash
18,000
16,800
Total
38,000
64,300
Cost of goods sold
$10,000
$9,000
Wages
8,000
13,000
Electricity
3,000
3,000
Rent
7,500
7,500
Total
28,000
32,500
Sales contribution
10,000
31,800
Explanation / Answer
From the figures shown above the business can be said to be a trading business.
In the given case, Credit sales increases from the budgeted level and cash sales reduces from the budgeted level..
The wages have been increased since the production is increased m
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.