Question
1. Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 35,100, a selling price of
1. Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 35,100, a selling price of $24, variable cost per unit of $10, and total fixed costs of $387,000. If Brooklyn's unit sales are 350 units less than anticipated, its breakeven point will:
increase by $10 per unit sold.
not change.
decrease by $10 per unit sold.
increase by $14 per unit sold.
decrease by $14 per unit sold.
2. Wolverine, Inc. began operations on January 1 of the current year with a $11,300 cash balance. 50% of sales are collected in the month of sale; 50% are collected in the month following sale. Similarly, 10% of purchases are paid in the month of purchase, and 90% are paid in the month following purchase. The following data apply to January and February:
January | February | |
Sales | $ 28,000 | $ 48,000 |
Purchases | 26,500 | 33,000 |
Operating expenses | 6,300 | 8,300 |
If operating expenses are paid in the month incurred and include monthly depreciation charges of $1,800, determine the change in Wolverine's cash balance during February.
$2,550 increase.
Some other amount.
$12,400 increase.
$4,350 increase.
$14,200 increase.
3. Tidewater plans to sell 84,000 units of product no. 794 in May, and each of these units requires 3 units of raw material. Pertinent data follow.
Product No. 794 | Raw Material | |
Actual May 1 inventory | 10,900 units | 28,900 units |
Desired May 31 inventory | 16,900 units | 19,900 units |
On the basis of the information presented, how many units of raw material should Tidewater purchase for use in May production?
261,000.
225,000.
279,000.
Some other amount.
243,000.
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