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Explain Sales budget
A sales budget is an estimate of expected sale during a budget period. A sales budget is known as a nerve center or backbone of the enterprise. The degree of accuracy with which sales are estimated will determine the practicability of operating budget. A sales budget is the starting point on which other budgets are also based.
A sales budget lays down potential sales figures in value as well as in quantity it lay down a comprehensive plan and programmed for sales department. The sales manager is made responsible for preparing sales budget. He uses all possible information available from internal and external sources.
Gardner Manufacturing Company produces a product that sells for $120. A selling commission of 10% of the selling price is paid on each unit sold. Variable manufacturing costs are $
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