James Manufacturing had the following information available for July: Actual Results Flexible Budget Variance Flexible Budget Sales Activity Variance Master BudgetUnits 14,200 ? 7,400 U ?Sales revenue ? $ 14,200 F ? ? ?Less: Variable manufacturing costs $ 99,750 $ 103,000 ? $ 180,600Variable marketing and administrative ? $ 3,850 U ? $ 4,600 F $ 31,200Contribution margin $ 54,400 ? ? $ 6,600 U ?What was James’s master budget sales revenue?Multiple Choice$259,200$170,400$226,000$200,200 PrevQuestion 14 of 17 Total14 of 17Visit question mapN
Question
James Manufacturing had the following information available for July: Actual Results Flexible Budget Variance Flexible Budget Sales Activity Variance Master BudgetUnits 14,200 ? 7,400 U ?Sales revenue ? 99,750 180,600Variable marketing and administrative ? 4,600 F 54,400 ? ? 259,200226,000$200,200 PrevQuestion 14 of 17 Total14 of 17Visit question mapN
Solution
To find the master budget sales revenue, we need to add the contribution margin, variable manufacturing costs, and variable marketing and administrative costs together.
From the information given, we know:
Contribution margin = 99,750 Variable marketing and administrative costs = $31,200
Adding these together, we get:
99,750 (Variable manufacturing costs) + 185,350
However, this is not one of the options given in the multiple choice. It seems like there might be a mistake in the question or the options provided.
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