Budgeting

Kudler Fine Foods Budget

The budgeting here will be from the absorption approach which is a budgeting process that considers all business overheads to be the product cost which eventually become an expense in the form of manufacturing cost of the goods and are sold as sales take place.

Budget for Kudler Fine Foods

Item

Revenues (Net sales)

$19,921,220

$22,092,633

$24,500,730

Cost of goods sold (less ending inventory)

$13,307,028

$14,570,893

$15,879,815

Total expenses

$1,928,722

$2,047,656

$2,177,855

Net operating income

$5,477,292

$5,474,084

$6,443,060

Integrative Marketing Agency (2010).

The growth rate of Kudler Fine Foods for the three years projected in the budget is 1.109% with varying profit margin of 27.49% for 2012, 24.78% for 2013 and projected 26.3% for 2014. The expenses are seen to grow with the revenues as well. This is a trend that has been consistent with the company over the last few years and into the...
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