The following data is provided for June 2019
Production in June 5.000 (in units)
Sales in June 5.000 (in units)
Direct materials 100.000
Direct labor 70.000
Fixed General industrialized costs 40.000
Average selling price 60
Fixed distribution and management costs 25.000
Also assume the following:
- There are no initial and final stock of products.
- Direct labor is the same every month
- The fixed distribution and management costs are the same each month.
- In December, the average selling price of the product is expected to be increased by 10%.
- In December, the direct materials cost is expected to be increased by 20%.
- In December, the Fixed General industrialized costs are expected to be increased by 6.000 (which covers the whole year and the cost is being allocated equally).
- The average Distribution and management variable cost is EUR 5 per unit.
- The average variable costs are Eur 7 per unit.
You need to prepare the elastic budget for December, by filling the blanks of the following table for each unit as well as for production and sales levels of 5000 and 6000 units.

Per unit 5.000 units 6.000 units
Sales   ? ?    ?
Minus Direct Raw materials ? ? ?
Minus Direct Labor ?   ?   ?
Minus Variable General Industrial costs ? ? ?
Minus Variable Distribution and Management Costs ? ? ?
Contribution margin ? ? ?
Minus Fixed General Industrial costs ? ?
Minus Fixed Distribution and Management Costs ? ?
Net result ? ? ?

Answer rating: 100% (QA)

Elastic budget for December Contents Per unit 5000 C... View the full answer