Jorgensen Company has the following data:
Month Budgeted Sales
April $154,000
May 160,000
June 142,000
July 136,000
Budgeted Operating Expenses Per Month
Wages $12,600
Advertising 27,200
Depreciation 19,000
Rent 20,400
Freight-out 20% of sales
Sales commission 5% of sales
Required:
Prepare a schedule of cash disbursements for operating expenses for April, May and June. All cash expenses are paid when incurred.
April May June
Wages $12,600 $12,600 $12,600
Advertising 27,200 27,200 27,200
Rent 20,400 20,400 20,400
Freight-out 30,800 32,000 28,400
Sales commission 7,700 8,000 7,100
Total disbursements $98,700 $100,200 $95,700
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Which of the following statements is true of the budgeting process?
A) If a company carefully plans for its future, there will be no need to make modifications during the budget period. B) It is a continuous process that encourages communication. C) It shows the actual performance of the business. D) Managers and employees are motivated to accept the budget's goals because they enjoy having their work monitored and evaluated.
The Excel LP model for this scenario shows the following sensitivity report for the variable cells . Comment on the salient features
Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $C$2 Newspaper 0 -1000 5000 1000 1E+30 $D$2 Radio 13.76 0 3000 333.3333333 500 $E$2 Twitter 0 -800 700 800 1E+30 $F$2 Facebook 4 0 200 1E+30 2