(Various budgets) The following are four independent situations.

a. Tasty Frozen Foods is planning to produce two products: frozen dinners and frozen desserts. Sales of frozen dinners are expected to be 200,000 units at $4 per unit; projected sales for frozen desserts are 400,000 units at $3 per unit. Variable costs are 70 percent and 80 percent of sales for dinners and desserts, respectively. What are total fixed costs if Tasty expects net income to be $425,000?

b. Herringbone Suits is projecting sales of $20,000,000 and total fixed manufacturing costs of $4,000,000 for 2000. The company estimates that variable manufacturing costs will be 40 percent of sales. Assuming no change in inventory, what is the company’s projected Cost of Goods Sold?

c. The Sizzle Company has projected the following information for October 2001:

Sales $800,000 Gross profit (based on sales) 25%

Increase in Merchandise Inventory in October $60,000 Decrease in Trade Accounts Payable for October $24,000 What are expected cash disbursements for inventories for October 2001?

d. Sam’s Calculators’ preliminary forecast for its product in 2000 is as follows:

Selling price per unit $20 Unit sales 200,000 Variable costs $1,200,000 Fixed costs $600,000 In preparing the above forecast, Sam included no advertising expenditures.

Based on a market study conducted in December 1999, the firm estimated that it could increase the unit selling price by 15 percent and increase unit sales volume by 10 percent if $200,000 were spent on advertising. If Sam’s Calculators adjusts its forecast by these amounts, what is the projected operating income for 2000? (CPA adapted)