In September, Larson Inc. sold 40,000 units of its only product for $240,000 and incurred a total cost of $225,000, of which $25,000 is fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U.The total sales revenue in the master budget for September was?The total number of budgeted units reflected in the master budget for September was?

The computation of total sales revenue in the master budget for September and total number of budgeted units reflected in the master budget for September is shown below:-

Actual Flexible budget Master

Units 40,000 40,000 50,000 Units

Sales $240,000 $60,000 U $300,000 $75,000 U $375,000

Variable

cost $200,000 $8,000 U $192,000 $48000 F $240,000

Contribution

margin $40,000 $68,000 U $108,000 $27,000 U $135,000

Fixed cost $25,000 $5,000 F $30,000 0 $30,000

Net income $15,000 $63,000 U $78,000 $27,000 U $105,000

So total sales revenue = $135,000 × $300,000 ÷ $108,000

= $375,000

Sales price per unit = $300,000 ÷ 40,000

= 7.5

As per master budget sales units = 375000 ÷ 7.5

= 50,000 units