Project+Master+Budget+-+Fall+2010

Project+Master+Budget+-+Fall+2010 - ACC 2362 Managerial...

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ACC 2362 Managerial Accounting - Master Budget Project Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima’s system is unique and represents a breakthrough in the industry. The mass-storage systems Optima produces combine positive features of both floppy and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (2011). The budget will detail each quarter’s activity and the activity for the year end in total. The master budget will be based on the following information: a. Fourth-quarter sales for 2010 are 48,000 units. b. Unit sales per quarter for 2011 are projected by sales staff as follows: First quarter 48,000 Second quarter 50,000 Third quarter 47,000 Fourth quarter 51,000 The selling price is $275 per unit. All sales are credit sales. Optima collects 70% of credit sales in the same quarter the sale is made and the remaining 30% is collected in the following quarter. There are no bad debts.
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Project+Master+Budget+-+Fall+2010 - ACC 2362 Managerial...

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