Crane's Wind Toys manufactures decorative kites, banners, and windsocks. During the month of January, Crane received orders for 3,000 Valentine’s Day banners and 1,200 Easter kites. Because several sewing machines are in the shop for repairs, Crane has only 1,000 sewing machine hours available for production of these orders. Each Valentine’s Day banner sells for $11. The banners take one hour to sew and have a total variable cost of $10 per banner. The Easter kites sell for $15. They take 15 minutes to sew and have a total variable cost of $14. (a) With only 1,000 sewing machine hours available, how many units should Crane produce for the below items? Kites ________ Banners _______
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Crane's Wind Toys manufactures decorative kites, banners, and windsocks. During the month of January, Crane received orders for 3,000 Valentine’s Day banners and 1,200 Easter kites. Because several sewing machines are in the shop for repairs, Crane has only 1,000 sewing machine hours available for production of these orders. Each Valentine’s Day banner sells for $11. The banners take one hour to sew and have a total variable cost of $10 per banner. The Easter kites sell for $15. They take 15 minutes to sew and have a total variable cost of $14.
(a)
With only 1,000 sewing machine hours available, how many units should Crane produce for the below items?
| Kites |
________
|
|
| Banners |
_______
|
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