1. What is the purpose of budgeting?
2. Describe the benefits of budgeting.
3. Describe the costs of budgeting.
4. Describe budgetary slack.
1. Cavanagh Company estimates its cost per unit at $375. Its markup is 80 percent.
What is the selling price?
What is the selling margin?
What is the selling margin percentage?
2. Murphy Enterprises has set its selling price at $400. At this price, its selling margin is $300. What is Murphy’s cost per unit? What is its selling margin percentage?
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