Selling margin

1. What is the purpose of budgeting?

2. Describe the benefits of budgeting.

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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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