1. Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $18,600 for March and $39,900 for April. What are the budgeted cash receipts from sales on account for April? $____________________

2.

A business operated at 100% of capacity during its first month, with the following results:

Sales (108 units)		$615,600
Production costs (135 units):
Direct materials	$83,183
Direct labor	21,238
Variable factory overhead	37,167
Fixed factory overhead	35,397	176,985
Operating expenses:
Variable operating expenses	$5,505
Fixed operating expenses	4,503	10,008

The amount of gross profit that would be reported on the absorption costing income statement is

a.$468,507

b.$464,004

c.$474,012

d.$615,465

3.

Strait Co. manufactures office furniture. During the most productive month of the year, 3,500 desks were manufactured at a total cost of $82,600. In the month of lowest production, the company made 1,200 desks at a cost of $64,400. Using the high-low method of cost estimation, total fixed costs are

a.$18,200

b.$54,915

c.$82,600

d.$64,400

4.

Gladstorm Enterprises sells a product for $50 per unit. The variable cost is $33 per unit, while fixed costs are $13,311. Determine the following: Round your answers to the nearest whole number.

a. Break-even point in sales units		units
b. Break-even point in sales units if the selling price increased to $60 per unit		units