Delta Manufacturing Has Budgeted the Following Unit Sales

question 8

Essay

Delta Manufacturing has budgeted the following unit sales:
Of the units budgeted, 40% are sold by the Coastal Division at an average price of $15 per unit and the remainder are sold by the Central Division at an average price of $12 per unit.
Instructions
Prepare separate sales budgets for each division and for the company in total for the second quarter of 2017.

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Definitions:

Income

The financial gain received by an individual or a business, typically from employment, investments, or sales of goods and services.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, with fixed overhead expenses charged to the period they arise.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Net Income

The amount of revenue left over after all expenses and taxes have been deducted.