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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.
) Allgood Inc. has fixed costs of $480,000. It has a unit selling price of $6, unit variable cost of $4.50, and a target net income of $1,500,000. HOW TO COMPUTE
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