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Unformatted text preview: Break even with 2 products – sales mix Analysis of change - if units increase what will new net income be? If sales price decreases, what will new contribution margin be? Remember to calculate AS IS first, then run changes through and compare. Study Guide Chapter 22 Definitions: Budget goal conflict budgetary slack zero-based budgeting continuous budgeting static budget flexible budget responsibility center Advantages of flexible budget Disadvantages of static budget Which budget is prepared first? Reasons to plan for capital expenditures Problems; CAN YOU WORK SIMILAR HW PROBLEMS FROM A BLANK SHEET OF PAPER?? Prepare a sales budget Prepare cash receipts budget (Remember the time lag is for CREDIT sales only) Prepare a production budget - memorize how to set it up! Remember to account for beg. and ending inventory!!...
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- Fall '09
- Contribution Margin, Study Guide Chapter